A method for monitoring health of a tool includes receiving at least one tool parameter related to the processing of a workpiece in a tool; receiving a model selection trigger; selecting a tool health model based on the model selection trigger; generating at least one predicted tool parameter based on the selected tool health model; and generating a tool health rating for the tool based on a comparison between the measured tool parameter and the predicted tool parameter. A tool health monitor includes a library of tool health models, a model selector, and a fault detection and classification unit. The model selector is adapted to receive a model selection trigger and select a tool health model based on the model selection trigger. The fault detection and classification unit is adapted to receive at least one tool parameter related to the processing of a workpiece in a tool, generate at least one predicted tool parameter based on the selected tool health model, and generate a tool health rating for the tool based on a comparison between the received tool parameter and the predicted tool parameter.