In this chapter, motor current signature analysis based on squared envelope spectrum is applied in order to identify and to estimate the severity of outer race bearing faults in induction machine. This methodology is based on conventional vibration analysis techniques, however, it is, non-invasive, low cost, and easier to implement. Bearing fault detection and identification in induction machines is of utmost importance in order to avoid unexpected breakdowns and even a catastrophic event. Thus, bearing fault characteristic components are extracted combining summation of phase currents, prewhitening, spectral kurtosis and squared envelope spectrum analysis. Experimental results with a 0.37 W, 60 Hz, and three-phase induction machine demonstrated the methodology effectiveness.