Any industry needs an efficient predictive plan in order to optimize the management of resources and improve the economy of the plant by reducing unnecessary costs and increasing the level of safety. Rotating machinery is the most common machinery in industry and the root of the faults in rotatingmachinery is often faulty rolling element bearings. Because of a transitory characteristic vibration of bearing faults, combining Continuous wavelet transforms with envelope analysis is applied for signal proseccing. This paper studies the application of independent component analysis and support vector machines to for automated diagnosis of localized faults in rolling element bearings. The independent component analysis is used for feature extraction and data reduction from original features. The principal components analysis is also applied in feature extraction process for comparison with independent component analysis does. In this paper, support vector machines-based multi-class classification is applied to do faults classification process and utilized a cross-validation technique in order to choose the optimal values of kernel parameters.