E-Actuator is an essential part of an eVGT, it receives the command from the main ECU and controls the vane. An e-Actuator failure can cause an abrupt change in engine output and it may induce an accident. Therefore, it is required to detect anomalies in the e-Actuator in real time to prevent accidents. In this paper, an e-Actuator fault detection method using on-line parameter identification is proposed. To implement on-line fault detection algorithm, many constraints are considered. The test input and sampling rate are selected considering the constraints. And new recursive system identification algorithm is proposed which reduces the memory and MCU power dramatically. The relationship between the identified parameters and real elements such as gears, spring and motor are derived. The fault detection method using the relationship is proposed. The experiments with the real broken gears show the effectiveness of the proposed algorithm. It is expected that the real time fault detection is possible and it can improve the safety of eVGT system.