Abstract: A distributed stress wave analysis system is disclosed for detecting structure borne sounds cause by friction. The detected information is processed using feature extraction and neural network artificial intelligence software. The system consists of stress wave sensors, interconnect cables, and preferably three modules: (1) distributed processing units, (2) maintenance advisory panel, and (3) laptop computer. A derived stress wave pulse train which is independent of background levels of vibration and audible noise is used to extract signature features, which when processed by neural networks of polynomial equations, characterize the mechanical health of the monitored components. The system includes an adjustable data fusion architecture to optimize indication thresholds, maximize fault detection probability, and minimize false alarms.