Rolling element bearings are key components of planetary gearboxes. Among them, the motion of planet bearings is very complex, encompassing spinning and revolution. Therefore, planet bearing vibrations are highly intricate and their fault characteristics are completely different from those of fixed-axis case, making planet bearing fault diagnosis a difficult topic. In order to address this issue, we derive the explicit equations for calculating the characteristic frequency of outer race, rolling element and inner race fault, considering the complex motion of planet bearings. We also develop the planet bearing vibration signal model for each fault case, considering the modulation effects of load zone passing, time-varying angle between the gear pair mesh and fault induced impact force, as well as the time-varying vibration transfer path. Based on the developed signal models, we derive the explicit equations of Fourier spectrum in each fault case, and summarize the vibration spectral characteristics respectively. The theoretical derivations are illustrated by numerical simulation, and further validated experimentally and all the three fault cases (i.e. outer race, rolling element and inner race localized fault) are diagnosed.