Rotating machinery is the fundamental component of almost all industrial frameworks. Therefore, prognostics and health management (PHM) have emerged as crucial requirements for effectively managing and sustaining various systems in a timely manner. The unbalanced fault has been recognized as a significant contributing factor in the development of faults in rotor-bearing systems, eventually causing failure. Thus, it is essential to monitor the unbalance and maintain it within acceptable bounds in order to guarantee the system’s proper operation. Most approaches to the rotor’s unbalance monitoring are model-based instead of data-driven due to the shortage of faulted data. In a derived model-based approach, proper identification of the model’s parameters, e.g., bearing parameters, always plays a very crucial role. Nonetheless, the identified model’s parameters in their initial state would inevitably degenerate during a long-term operation because of aging or environmental changes, such that they are no longer well representative of the real system. In this context, this paper offers an adaptive model-based approach for the assessment of unbalance faults developing over days in a rotor-bearing model. The model is adaptive in the sense that it automatically adjusts its parameters so that they are more closely aligned with the real system. A particle swarm optimization (PSO) scheme is utilized in the parameter identification process. The residual serves as the index for initiating the adaptive process when it is greater than a preset percentage. Individual feature errors work as a gauge to determine which bearing parameters need to be reevaluated. A set of 16-month operational data from a local petrochemical company is used to validate the approach. The unbalanced deterioration trend is evaluated, and results from the adaptive methodology are assessed to show its superiority over the original one. It is also observed that the model’s capacity to anticipate unbalance is greatly enhanced by the adaptive strategy. Finally, future unbalances are explored to show its capacity for continuous monitoring-based maintenance solutions.