A predictive maintenance system and method for a dental handpiece includes a condition sensor for sensing a condition of the handpiece to obtain sensor data and providing wired communication of the sensor data and a device identifier from the handpiece to a delivery unit. The system is configured to store sensor data, a device identifier and a time stamp in data logging equipment to obtain a usage history for the handpiece. The system determines a maintenance condition of the handpiece based on the sensor data and/or the usage history of the handpiece. In response to a severity of the maintenance condition, the system provides a preventative maintenance indication of a future failure for the handpiece or stops operation of the handpiece.