This paper presents the design and implementation of a system for detecting the microscopic faults and defects present in the electrical machinery using the vibration analysis. Vibration analysis based on mechanical bearing frequencies in industrial machines is currently used to detect the presence of a fault condition. Since these mechanical vibrations are associated with variations in the physical disturbances of the machine, the air gap flux density is modulated and peak amplitudes are generated at predictable frequencies related to the electrical supply and vibration frequencies. Spartan3E FPGA was used in this process to reduce the time of detection and to increase the accuracy in displaying the fault position. Induction motor HS-1 by High Speed Motors is taken as the device under test to perform the vibration analysis and draw the results. The device SI-100 by Syscon Instruments is the sensor used to extract the analog information of interest from the motor during the implementation. In addition all this phenomena is also tested using LabVIEW2009 and NI-ELVIS to check the accuracy of the results.