Systems and methods for estimating engine and electrical machine health are provided. The systems and methods therefore include features that provide for improved health estimates of one or more engines and/or electrical machines of one or more engines having an electrical machine embedded therein or coupled thereto. In particular, the systems and methods therefore include features for utilizing sensed or measured operating parameters of the electrical machines and/or operating parameters of the prime mover to estimate the health of the prime mover and/or the electrical machines embedded therein or coupled thereto.