Hysteresis phenomenon is a distinctive approach to describe natural behaviour of the magnetic materials and magnetic cores. This paper proposes a phenomenological approach for core quality assessment and condition monitoring of magnetic cores with grain-oriented electrical steels. The developed technique is based on the hysteresis phenomenon and interpreting the most distinctive parameters of the measured dynamic hysteresis loops. In this study, artificial short circuits were introduced between the laminations of stacks of two, three and four Epstein size strips of Fe-3 wt % Si grain oriented steel. The results showed that, condition monitoring of the magnetic cores can be effectively performed by measuring and analysing the hysteresis loops.