The present situation and trends of monitoring technology development are summarized in the paper. The FMS/FMC condition monitoring and fault diagnosis system. CMFDS，is designed and developed. The system composition，function，equipment，hardware/software structure，general strategies and technical features are given. The experiments in the machining-center and FMS indicates that the system is of good generality and succinctlness. The system designed represents the integrated and intelligence trend of monitoring and diagnosis technology development.