One of the earliest documented applications of Acoustic Emission Technology (AET)to rotating machinery monitoring was in the late 1960s. Since then there has been an explosion in research and application based studies covering bearings, pumps, gearboxes, engines and rotating structures. This paper presents a comprehensive and critical review to date on the application of Acoustic Emission Technology to condition monitoring and diagnostics of rotating machinery. of surface asperities and impingement of the bearing rollers over a defect on an outer race will result in the generation of acoustic emission. These emissions propagate on the surface of the material as Rayleigh waves and the displacement of these waves is measured with an AE sensor. Rayleigh waves are a combination of longitudinal and transverse waves [4]. It should be noted that surface defects such as cracks and scratches attenuate rayleigh waves, in addition, the surface finish of metals can also influence attenuation [4].Judicious application of well-tried and tested acoustic emission technology can provide powerful diagnostic capabilities, which are safe, efficient and cost-effective. This paper reviews the research and development activities that are being pursued in the following subject areas; bearings (roller and hydrodynamic), gearboxes, pumps, machinery and mechanical seals.Acoustic emission (AE) was originally developed for non-destructive testing of static structures, however, over the last 35 years its application has been extended to health monitoring of rotating machines, including bearings, gearboxes, pumps, etc. It offers the advantage of earlier defect/failure detection in comparison to vibration analysis due to the increased sensitivity offered by AE. However, limitations in the successful application of AE technique for monitoring the performance of a wide range of rotating machinery have been partly due to the difficulty in processing, interpreting and classifying the intelligent information from the acquired data. The main drawback with the application of the AE technique is the attenuation of the signal and as such 3 the AE sensor has to be close to its source. However, it is often practical to place the AE sensor on the non-rotating member of the machine, such as the bearing or gear casing. Therefore, the AE signal originating from the defective component will suffer severe attenuation, and reflections, before reaching the sensor. AE covers a wide frequency range (100 kHz to 1MHz) and time domain waveforms associated with AE are of two types; burst and continuous. A continuous type AE refers to a waveform where transient bursts are not discernible [5]. Both waveform types are associated with rotating machinery, for instance, a continuous type emission may be as a result of turbulent fluid flow within a peep while a burst type could be associated with transient rolling action of meshing bears. On rotating machinery typical background operational noise is of a continuous type. Traditionally the most commonly measured AE parameters ...