Bearings are commonly subjected to load, transmission, and impact during operation, resulting in bearing failure that ultimately leads to mechanical breakdown. The low energy level of fault-induced impulsive signals, however, renders it vulnerable to being masked by environmental noise and other disturbances present in the vibration signal. To cope with this issue, this paper investigates the application of the finite impulse response (FIR) filter for bearing fault detection. In this work, the estimation of the FIR is formulated as a least squares optimization problem, aiming to minimize the l 2 norm of the FIR and effectively suppress noise and interference sources. The solutions of the least squares optimization problem are obtained using the fast iterative shrinkage–thresholding (FISTA) algorithm. Furthermore, to better select the regularization parameter in our method, an improved gray wolf optimizer (I–GWO) is employed to conduct the parameter selection. Based on these improvements, the proposed FISTA–LSD technique enables rapid and precise detection of fault characteristics upon their occurrence, thereby mitigating the propagation of faults and preventing accidents from happening. Furthermore, with this automated selection process, engineers can save valuable time that would otherwise be spent on trial-and-error approaches. Through its rapid response capabilities and precise fault detection abilities enabled by the FISTA–LSD technique along with I–GWO integration for automatic parameter selection; this FISTA–LSD technique greatly enhances its practical value. The proposed technique is validated through the utilization of both numerical and experimental data.