This paper demonstrates the experimental setup to acquire the stator current of single phase induction motor; and applies FFT technique to detect the fault in motor. The faults created in motor are bearing and rotor fault. Using current sensor, the signal under healthy state and faulty state is acquired from the motor, then using MATLAB signal processing toolbox the spectrum of the corresponding signal is obtained. The spectrum of the signal under fault is compared with the spectrum of the healthy signal and it is expected that the fault will be detected. The spectrum of the motor under healthy state is called the signature of the machine. This is unique for each machine. The central idea is that the signature of any machine under healthy and fault condition will be different. And, this forms the basis of condition monitoring and fault detection.