Abstract A systematic method of fault diagnosis for analogue circuits based on the combination of Neural network with Wavelet Transform (WNT) is presented in the paper. Using the wavelet decomposition as a de-noise tool,the feature information is extracted by wavelet de-noise and its multi-resolution. The best fault classifier is obtained by comparing the performance of functional and weighted WNT. Diagnosis principles and steps are described. Finally, the reliability of the methods presented is shown by practical examples.