This paper will introduce and optimize a new model of demodulation algorithm named Energy Operator Demodulation Approach to improve the limitation of the demodulation analysis widely used in many fields at present. Compared with Hilbert transform method, and optimized algorithm through Simulation test, which shows optimized Energy Operator algorithm is more simple ,faster and accurate than other algorithms. Finally, it is verified that research on fault diagnoses of rolling bearing based on the energy operator demodulation approach is very effective.