The paper investigates vibration testing methodologies for automotive tapered roller bearings. The European Union regulations have indirectly led to improvements in the NVH performance of the bearings that affect both the industrial and automotive markets. The goal of this study was to examine the influence of localized small defects on the vibrations’ magnitudes within tapered roller bearings. A Rockwell indenter was used to create three different surface defects. These three levels, representing different indentation pressures, mimic defects that could occur during manufacturing or bearing installation. Indents were placed on inner raceways, the outer raceways, and the roller bodies. After the assembly of the components, different vibration testing methodologies were applied to quantify those types of defects. This paper presents a new envelope analysis approach to monitoring for defects. The paper presents the current Fast Fourier Transform (FFT) testing approach, whereby the machine sensitivity is representative of a typical quality control bearing thresholds. This paper also presents a new, more robust method and analyzed for its suitability in the detection of localized defects.