The purpose of this paper is to provide technical background, techniques and actual diesel engine signature analysis evaluation result. Engine signature analysis(ESA) is a process for monitoring the material condition of diesel engine using external sensors, eliminating the need to periodically disassemble the engine. ESA is also used to balanced the engine. Engine balancing is the process of tuning the engine so that all cylinders carry equal load. ESA is a useful tool to non-intrusively determine the operability and performance and assessment of the material condition of internal component of a diesel engine.