In order to analyze the faults of equipment in the process of operation in time and feed them back to the information system synchronously, and provide decision-making information for the setting of maintenance scheme, the method of intelligent monitoring and fault diagnosis in textile automatic production is put forward. The condition monitoring system of textile machinery can monitor the signal parameters of textile equipment in operation, and then analyze the failure problems faced by textile equipment in the current control mode by comparing the system reference parameters. Based on this, taking vibration signal analysis as the breakthrough point, this paper expounds the condition monitoring signal analysis and fault diagnosis of textile machinery. The results show that the monitoring times are 8 times, and then the actual efficiency of fault diagnosis is obtained by analyzing the data, and the false alarm rate is less than 0.5%.