This paper proposes a new method for bearing fault diagnosis using wavelet packet transform (WPT)-based signal representation and informative factor linear discriminant analysis (IF-LDA). Time–frequency domain approaches for analyzing bearing vibration signals have gained wide acceptance due to their effectiveness in extracting information related to bearing health. WPT is a prominent method in this category, offering a balanced approach between short-time Fourier transform and empirical mode decomposition. However, the existing methods for bearing fault diagnosis often overlook the limitations of WPT regarding its dependence on the mother wavelet parameters for feature extraction. This work addresses this issue by introducing a novel signal representation method that employs WPT with a new rule for selecting the mother wavelet based on the power spectrum energy-to-entropy ratio of the reconstructed coefficients and a combination of the nodes from different WPT trees. Furthermore, an IF-LDA feature preprocessing technique is proposed, resulting in a highly sensitive set of features for bearing condition assessment. The k-nearest neighbors algorithm is employed as the classifier, and the proposed method is evaluated using datasets from Paderborn and Case Western Reserve universities. The performance of the proposed method demonstrates its effectiveness in bearing fault diagnosis, surpassing existing techniques in terms of fault identification and diagnosis performance.