This paper reviews the latest development of fault diagnosis techniques of networked systems. Considering various challenges raised by unreliable local sensors, signal digitization, data transmission, as well as distributed architecture, recent progress on model‐based fault diagnosis of networked systems are overviewed. We summarize the typical application examples and the typical treatment methods related to scientific problems for better understanding the framework of this area. Some promising future fault diagnosis techniques in various scenarios, such as distributed systems, with communication protocols, with cyber security issues, with intelligent algorithm challenges, as well as within active fault diagnosis framework are discussed.

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