Signal processing plays a significant role in building any condition monitoring system. Many types of signals can be used for condition monitoring of machines, such as vibration signals, as in this research; and processing these signals in an appropriate way is crucial in extracting the most salient features related to different fault types. A number of signal processing techniques can fulfil this purpose, and the nature of the captured signal is a significant factor in the selection of the appropriate technique. This chapter starts with a discussion of the proposed robot condition monitoring algorithm. Then, a consideration of the signal processing techniques which can be applied in condition monitoring is carried out to identify their advantages and disadvantages, from which the time-domain and discrete wavelet transform signal analysis are selected.