An on-line diagnostic test has been studied and performed for the pumped storage generator/motor. This study aims at reducing the diagnostic cost, minimizing the technical dependency on third party manufactures. Further design of on-line diagnostic system such as shorted-turn of rotor winding, partial discharge (PD) of stator winding and air-gap between stator and rotor for pumped storage generator/motor has been verified. In addition, it needs to be validated on site performance of the developed continuous on-line monitoring system for corresponding tasks for the improvement of the availability & reliability during operation.