This article presents a self-powered system for supplying rotor measurement equipment and detecting stator winding inter-turn short circuit, and broken rotor bar faults in AC Machines. This system uses harvesting coils to harvest air-gap magnetic field pulsation and generate energy for powering equipment installed on the rotor. Furthermore, installing this system on the stator or rotor of AC machines provides a voltage signal appropriate for fault detection purposes. To determine specifications of the harvesting coils – coils turn numbers, and their optimal mounting positions – numerous finite element simulations have been carried out. In addition, a fault detection method has been proposed to detect broken rotor bar and inter-turn short circuit faults using induced voltage in the harvesting coils. To verify the performance of the proposed system, some experimental and simulation tests have been performed on various AC machines. The results have confirmed the applicability of this system in self-powering applications and fault detection purposes.