The foundation of textile machinery digitization and intelligence is condition monitoring and identification. Online condition monitoring of looms is of great significance to ensure their long-term stable operation and improve their digital management level. However, the existing loom condition monitoring methods have problems such as insufficient depth of information mining, low condition recognition rate and poor system versatility. As a result, the loom on-board condition monitoring technology based on fuzzy rough set and improved DSmT theory is studied. To begin, we examine the loom operation mechanism, loom state characterization, and loom state feature data composition. Then, using the fuzzy rough set method, we analyze and make decisions on the loom state feature data, apply the theory of uncertainty and importance improvement DSmT fusion to solve the uncertainty problem of the rough set method’s decision rules, and build the loom state feature decision network on the embedded terminal using the decision rules. Meanwhile, to collect, communicate, display, and alarm loom characteristic data, this paper employs the STM32F407ZET6 microcontroller and designs a loom system status data collection platform with the AD7730 as the core, as well as tests loom status monitoring data collection and loom status data analysis and decision method based on this platform. The experimental findings show the usefulness of attribute data gathering as well as data analysis and decision-making processes. The technology enhances the precision of loom condition identification and decision making, as well as the safety and quality of manufacturing. It is critical for carrying out applications like as problem detection, remote monitoring, efficiency optimization, and intelligent weaving machine management.