Abstract：Acoustic Emission (AE) technique is a non-destructive testing method and widely used for the early detection of faults in rotating machines in these days, because the sensitivity of AE transducers is higher than normal accelerometers. So it can detect low energy vibration signals. The faults in the rotating machines are generally occurred at bearings and gearboxes which are the principal parts of the machines. It was studied to detect the bearing faults by envelop analysis in several decade years. And the researches showed that AE had a possibility of the application in condition monitoring system(CMS) using the envelope analysis for the rolling bearing. And peak ratio (PR) was developed for expression of the bearing condition in condition monitoring system using AE. Noise level is needed to reduce to take exact PR value because the PR is calculated from total root mean square (RMS) and the harmonics peak levels of the defect frequencies of the bearing. Therefore, in this paper, the discrete wavelet transform (DWT) was added in the envelope analysis to reduce the noise level in the AE signals. And then, the PR was calculated and compared with general envelope analysis result and the result of envelope analysis added the DWT. In the experiment result about inner fault of bearing, defect frequency was difficult to find about only envelop analysis. But it's easy to find defect frequency after wavelet transform. Therefore, Envelop analysis added wavelet transform was useful method for early detection of default in signal process. Key words：Acousti
