This paper introduces a novel network, DDFE-Transformer (Data-Driven Feature Extraction-Transformer), for fault diagnosis using acoustic emission signals. The DDFE-Transformer network integrates two primary modules: the DDFE module, focusing on noise reduction and feature enhancement, and the Transformer module. The DDFE module employs two techniques: the Wavelet Kernel Network (WKN) for noise reduction and the Convolutional Block Attention Module (CBAM) for feature enhancement. The wavelet function in the WKN reduces noise, while the attention mechanism in the CBAM enhances features. The Transformer module then processes the feature vectors and sends the results to the softmax layer for classification. To validate the proposed method’s efficacy, experiments were conducted using acoustic emission datasets from NASA Ames Research Center and the University of California, Berkeley. The results were compared using the four key metrics obtained through confusion matrix analysis. Experimental results show that the proposed method performs excellently in fault diagnosis using acoustic emission signals, achieving a high average accuracy of 99.84% and outperforming several baseline models, such as CNN, CNN-LSTM, CNN-GRU, VGG19, and ZFNet. The best-performing model, VGG19, only achieved an accuracy of 88.61%. Additionally, the findings suggest that integrating noise reduction and feature enhancement in a single framework significantly improves the network’s classification accuracy and robustness when analyzing acoustic emission signals.