In the present time, the multi-phase motor especially five phase Permanent Magnet Synchronous Motor (PMSM) machines are being popular and used in many industrial applications with efficient performance. The main features of this machine are its reliability and excellent dynamic performance. Due to these features, this permanent magnet motor is widely being used in automotive or high power traction systems. However, the possibility of failures during motor operation cannot be denied and further it leads to large revenue losses for industries. In PMSM machines, diagnosis of magnetic demagnetization has been a challenging task for many researchers since last decade. Thus, condition monitoring of this motor for magnetic demagnetization is very essential. Therefore, in this research paper, the magnetic demagnetization of the motor has been diagnosed precisely in the early stages by the advanced Motor Current Signature Analysis (MCSA) technique.