Condition monitoring of machinery is the analysis & measurement of various
parameters related to the mechanical condition of the machinery which makes it
possible to determine whether the machinery is in good or bad mechanical condition. The philosophy of conditional monitoring has been extended over now to analyze and understand even the winding and insulation thus propagating itself to electrical healthiness of the machines. This has been a significant move to realize not only the state and operation of a machine but also to predict its healthiness and condition attributing to save a lot of unwanted/unprecedented and forced outage. If the mechanical condition is bad, then condition monitoring makes it possible to deter- mine the cause of the problem. The result is the maximization of the machine availability and maximum utilization of its components. Conditional monitoring has been limited to mechanical parameter supervision generally owing its understanding over the mechanical aspects of the machine. In this paper we would like to understand especially electrical parameters and its effect over electrical insulation , winding condition and also mechanical healthiness of machine. In the initial section we would devote our understanding of FFT analyses of field current directly or through as search coil, stator current, ground voltage through a NGT and then the shaft ground voltage and current components and understand and compare its signature spectrum over a normal operating condition to a various simulated fault conditions and a large number of operating severity conditions such as surge , unbalance load and distinguish it with faulty condition. This would help us keep a trace of probable developing failures and their understanding helping us to plan and rectify the above. Lastly we would study the vibration signature spectrum over generator stator frame and transformer body and analyse it to understand the healthiness of insulation core and winding with respect to vibration spectrum over the frame or body. The results and test would be simulated over a DFIG and also a case study over a operating hydro station would be done and its various results and simulations shall be presented to analyze and predict the healthiness of a machine. The above aspects of conditional monitoring would require precise understanding of various faults and hazards and their dedifferentiation over normal conditions hence helping to form a effective tool to reduce and help in regular and effective periodic maintenance.