To increase the validity of real-time fault detection of turbopump in Liquid-propellant rocket engine, a new signal processing method called modified Time Encoded Signal Processing and Recognition (TESPR) was presented to extract the features of vibration signal in real time. To extend the application of TESPR, the constraint about the duration of signal waveform components was abolished and a new encoding method was advanced. By the test of vibration data from normal as well as abnormal turbopump, the stability of this method and its affectivity for fault detection were verified. It shows that this signal processing method can be applied to turbopump fault detection.