This paper presents a stand-alone multisensor wireless system for continuous condition monitoring of induction motors. The proposed wireless system provides a low-cost alternative to expensive condition monitoring technology available through dedicated current signature analysis or vibration monitoring equipment. The system employs multiple sensors (acoustic, vibration, and current) mounted on a common wireless platform. The faults of interest are static and dynamic air-gap eccentricity, bearing damage, and their combinations. The Hilbert-Huang transform of vibration data and power spectral density of current and acoustic signals are used as the features in a hierarchical classifier. The proposed wireless system can distinguish a faulty motor from a healthy motor with a probability of 99.9% of correct detection and less than 0.1% likelihood of false alarm. It can also discriminate between different fault categories and severity with an average accuracy of 95%.