This study introduces an innovative approach for fault diagnosis of a multistage centrifugal pump (MCP) using explanatory ratio (ER) linear discriminant analysis (LDA). Initially, the method addresses the challenge of background noise and interference in vibration signals by identifying a fault-sensitive frequency band (FSFB). From the FSFB, raw hybrid statistical features are extracted in time, frequency, and time–frequency domains, forming a comprehensive feature pool. Recognizing that not all features adequately represent MCP conditions and can reduce classification accuracy, we propose a novel ER-LDA method. ER-LDA evaluates feature importance by calculating the explanatory ratio between interclass distance and intraclass scatteredness, facilitating the selection of discriminative features through LDA. This fusion of ER-based feature assessment and LDA yields the novel ER-LDA technique. The resulting selective feature set is then passed into a k-nearest neighbor (K-NN) algorithm for condition classification, distinguishing between normal, mechanical seal hole, mechanical seal scratch, and impeller defect states of the MCP. The proposed technique surpasses current cutting-edge techniques in fault classification.