Accurate and timely fault detection and isolation (FDI) improve the availability, safety, and reliability of target systems and enable cost-effective operations. In this study, a shared nearest neighbor (SNN)-based method is proposed to identify the fault variables of a circulating fluidized bed boiler. SNN is a derivative method of the k-nearest neighbor (kNN), which utilizes shared neighbor information. The distance information between these neighbors can be applied to FDI. In particular, the proposed method can effectively detect faults by weighing the distance values based on the number of neighbors they share, thereby readjusting the distance values based on the shared neighbors. Moreover, the data distribution is not constrained; therefore, it can be applied to various processes. Unlike principal component analysis and independent component analysis, which are widely used to identify fault variables, the main advantage of SNN is that it does not suffer from smearing effects, because it calculates the contributions from the original input space. The proposed method is applied to two case studies and to the failure case of a real circulating fluidized bed boiler to confirm its effectiveness. The results show that the proposed method can detect faults earlier (1 h 39 min 46 s) and identify fault variables more effectively than conventional methods.