This paper proposes an efficient fault detection method for onboard degaussing coils which are installed to minimize underwater magnetic fields due to the ferromagnetic hull. To achieve this, the method basically uses field signals measured at specific magnetic treatment facilities instead of time-consuming numerical field solutions in a three-dimensional analysis space. In addition, an analytical design sensitivity formula and the linear property of degaussing coil fields is being exploited for detecting fault coil positions and assessing individual degaussing coil currents. Such peculiar features make it possible to yield fast and accurate results on the fault detection of degaussing coils. For foreseeable fault conditions, the proposed method is tested with a model ship equipped with 20 degaussing coils.