In this paper, we propose a model-based fault diagnosis method applied to vibration data. The fault detection is performed by comparing estimated parameters with normal parameters and deciding if the observed changes can be explained satisfactorily in terms of noise or undermodelling. The key feature of this method is that it accounts for the effects of noise and model mismatch. And we aslo design a classifier for the fault isolation by applying the multiclass SVM (Support Vector Machine) to the estimated parameters. The proposed fault detection and isolation methods are applied to an engine vibration data to show a good performance. The proposed fault detection method is compared with a signal-based fault detection method through a performance analysis.