In the rotating machinery, rolling bearing is used widespread in many places. Due to various reasons, there is great dispersion in the life of bearing. Therefore, it is very important to have fault diagnosis of rolling bearing, especially the small fault diagnosis of rolling bearing. According to the characteristics of rolling bearing defect signals and the features integrated with wavelet transform, Hilbert transform and envelope spectrum detailed analysis, this text proposed a method to judge the bearing failure. At first, bearing vibration signals are reconstructed from wavelet filter and envelope signals are obtained by Hilbert transform and then vibration spectrum is obtained from the refining envelope spectrum. Bearing failure is judged from the refining frequency spectrum. Bearing failure is also estimated by experiment to verify the correctness of theoretical analysis.