A method of diagnosing operation of a turbo speed sensor that monitors a turbocharger in an internal combustion engine system includes determining whether the engine system is operating in one of a high speed and a low speed range and determining a threshold turbo speed value based on whether engine system is operating in one of the high speed and the low speed range. An actual turbo speed value of the turbocharger is monitored based on a signal generated by the turbo speed sensor. The actual turbo speed value is compared to the threshold turbo speed value and a diagnostic signal is generated based on the step of comparing.