Fault diagnosis IETM is a digital technical manual which integrates editing, management, display and publication and faces the field of fault diagnosis. In its development process, there are some problems such as complex data management and difficult interaction. The successful application of XML technology becomes the key to solve these problems. In this paper, based on S1000D IETM development standard, the main characteristics of XML and its related technologies are first introduced, and then the application of XML and its related technologies in fault diagnosis IETM is analyzed and studied, including the creation of fault information data module, the display control of fault information and the comprehensive management of data. A conversion method between XML document data and database data is proposed, and the design process of fault diagnosis IETM based on XML is discussed. Finally, a fault diagnosis IETM display system based on XML is preliminarily developed by combining the related technologies mentioned above. Experiments show that XML technology can effectively manage the information in fault diagnosis IETM and display it to users in an interactive way, which has important theoretical value and certain practical significance for developing fault diagnosis IETM and exploring the deeper application of XML in IETM.