In recent years, there has been a growing interest in the use of fault analysis techniques in unmanned marine vehicles (UMVs) owing to their significant impact on marine operations. This study presents a novel approach to the diagnosis of unbalanced load (blades damage) faults in an electric thruster motor in UMV propulsion systems based on orthogonal fuzzy neighbourhood discriminative analysis for feature dimensionality reduction. The diagnosis approach is based on the use of discrete wavelet transforms as a feature extraction tool and the optimal number of mother wavelet function and levels of resolution by analysing the vibration and current signals. As a result of analysis and comparisons, the Deubechies 12 (db12) wavelet and level 8 were chosen. A dynamic recurrent neural network was chosen for fault classification and level of fault severity prediction was implemented. Four faulty conditions were analysed under laboratory conditions and these were recreated by damaging the blades of a motor. The results obtained from the simulation demonstrate the effectiveness and reliability of the proposed methodology in classifying the different faults with greater speed and accuracy compared to existing methods.