Fault vibration signals of rolling bearings in early stages are affected by complex transmission paths and strong background noise, resulting in weak information about fault characteristics, which is difficult to extract clearly and accurately. To this end, a new diagnosis method for early faults of rolling bearings is proposed. First, the parameter-adaptive multipoint optimal minimum entropy deconvolution adjusted (PA-MOMEDA) algorithm is used to preprocess the fault signals by strengthening their shock components and weakening the influence of noise on their results. Second, the maximum envelope-spectrum characteristic energy ratio is employed as the selection criterion for the optimal truncation order of dynamic mode decomposition (DMD) to decompose and reconstruct the signals. Finally, the processed signals are subjected to the Hilbert envelope spectral transformation to accurately extract early fault characteristic frequencies. An analysis of simulated signals, public database signals, and bearing signals from a wind turbine has shown that the proposed PA-MOMEDA–DMD method can successfully extract the early fault characteristics of rolling bearings. Compared with the traditional pattern decomposition algorithms, the proposed method is much better at extracting fault characteristics and diagnosing early faults of rolling bearings. The facts have proved that the proposed method is promising in engineering applications.