In production practice, the signal gathered by a sensor often includes strong ambient noise, and its composition is complex. Focusing on the problem that traditional methods are difficult to separate and extract fault frequencies from strong background noise, a novel compound fault blind extraction method based on improved sparse component analysis (ISCA) and improved maximum correlation kurtosis deconvolution (IMCKD)-named ISCA‐IMCKD- is suggested. Initially, the signal that the sensor has collected is shifted into time-frequency area signal by short-time Fourier transform (STFT). In addition, the single source domain characteristic data is screened by improved single source point detection to determine the number of sources. Second, the ISCA method is optimized by using cosine distance improved fuzzy C-means clustering, which is utilized to further process the characteristic data to calculate the mixing matrix. Moreover, the estimated source signal is initially extracted according to the membership degree of clustering results. Finally, the estimated source signal is shifted into the time area by inverse STFT transform, and the IMCKD is employed to enhance the characteristics of the projected source signals. Meanwhile, the initially estimated source signal is completely separated, and the defect frequencies of the composite faults are finally extracted by envelope analysis. Simulation experiments and measured data are employed to certify the viability of the proposed means. The defect detection of rolling bearings is finished while the time cost is significantly saved.