Based　on　wavelet　analysis　method　and　Hilbert　envelop　demodulation,　a　method　for　the　fault　diagnosis　of　rolling　bearings　is　proposed　in　this　paper.　The　local　Hilbert　demodulation　and　local　wavelet　transform　are　introduced　respectively.　The　wavelet　transform　is　used　to　translate　vibration　signals　into　time-scale　representation.　Then,　an　envelope　signal　can　be　obtained　by　envelop　spectrum　analysis　of　wavelet　coefficients　of　high　scales　from　which　the　faults　in　a　roller　bearing　could　be　diagnosed.　Vibration　signals　measured　from　roller　bearings　test　rig　with　outer　race　faults　are　analyzed　by　the　proposed　method.　The　results　show　that　the　proposed　method　can　diagnose　the　faults　in　a　roller　bearing　and　fault　patterns　con　be　identified.