In this work the two disciplines of condition based maintenance (CBM), structural health monitoring (SHM) and prognostics are described fault identification and estimation is an important and necessary step in condition based maintenance. In the present work, an experiment is carried out with a customized test setup where the seeded defects are introduced in the inner race and outer race of a radial ball bearing. The relationship between the acquired vibration data and their relation with the seeded defect is found in this paper. When experiment is performed on the test setup designed for Fault prediction, Analytical Wavelet Transform proved an effective tool for the analysis of vibration signal. In this work, AWT followed by the Power Spectral Density is implemented on vibration signals of a defective Radial Ball Bearing. After finding the fault, its location and its intensity Ball Bearing's remaining useful life is estimated.