The damage of vulnerable components inside the cylinder of reciprocating compressor, including the valve, piston ring, packing and piston ring, will cause the unexpected shutdown of the compressor unit. The indicator diagram which reflects the thermodynamic process in the cylinder is suitable for fault diagnosis of vulnerable components. However, most of the published fault diagnosis methods based on indicator diagram are aimed at the fault diagnosis of gas valve. In addition, the extracted features lack physical meaning in most fault diagnosis methods using machine learning algorithm, which is not conducive to be widely applied in practical engineering. In this study, features with definite physical meaning, including average suction pressure, average discharge pressure, area of indicator diagram and centroid coordinates of indicator diagram, are extracted from indicator diagram, and the threshold database of features under normal states and various fault states is established according to the contrast experiment. The results of the experiment show that the thresholds of the extracted parameters are obviously different under normal states and various fault states. During fault diagnosis, several groups of indicator diagrams of the compressor to be diagnosed are collected at first. After feature extraction, the extracted features are compared with the thresholds under different compressor states to obtain the average numbers of features within the threshold range under different compressor states to determine the compressor states. The accuracy of the method for judging whether the compressor is faulty or normal could reach 98.3%. Furthermore, the accuracy of identifying individual faulty components and multiple faulty components could reach 86.86%. The reason for the low overall diagnostic accuracy is that certain faults have similar effects on the features extracted from indicator diagram. The proposed method is believed as an excellent fault diagnosis method for the vulnerable components inside the cylinder of reciprocating compressor.