This paper focuses on developing and testing a comprehensive monitoring and detection laboratory system, for use in electrical drives systems using Induction Machines. The article aims to provide further documentation for an advanced condition monitoring system including transducers, signal conditioning box and data acquisition device, in order to avoid undesirable operating conditions and to detect and diagnose incipient electrical faults. Also, this paper suggests the possibility of diagnosing different types of failures by means of spectral analysis of current and voltage. .