Engine knock limits the thermal efficiency improvement of spark-ignition (SI) engines. Thus, the extract research of the knock characteristics has a great significance for the development of gasoline engines. The research proposes a novel knock detection and diagnosis method in SI engines using the CEIITD (Complementary Ensemble Improved Intrinsic timescale decomposition) and Bi-spectrum algorithm. The CEIITD algorithm is used to extract the knock characteristics. The results show that the CEIITD algorithm can effectively and clearly extract the knock shock characteristics (including light knock) through the vibration signals. A Bi-spectrum analysis can further distinguish between the light knock signal and normal combustion signal. The Bi-spectrum results also show that knock characteristic has a strong non-Gaussian property. At last, the Band pass filter and Improved ITD method were employed to identify the knock characteristics from these cylinder block vibration signals. The comparison result shows that the CEIITD method proposed in this paper is more suitable to detect the knock characteristic.