A system and method for detecting a rotor fault condition in an AC induction machine is disclosed. The system includes a processor programmed to receive voltage and current data from an AC induction machine, generate a current frequency spectrum from the current data, and identify rotor-fault related harmonics in the current frequency spectrum. The processor is also programmed to calculate a fault severity indicator using the voltage and current data, identified rotor-fault related harmonics, and motor specifications, analyze the fault severity indicator to determine a possibility of rotor fault. The processor generates an alert based on the possibility of rotor fault.