In order to maintain continuous production and to avoid the maintenance cost increment in power plants, it is important to monitor the condition of equipment, especially the generator. Regarding the impossibility of direct access to rotating diodes in brushless synchronous generators, the condition monitoring of these elements is very important. Here, a novel fault detection method is proposed for the diode rectifier of brushless synchronous generator. At the first stage of this method, the vibration signals are recorded and feature extraction is performed by calculating the relative energy of discrete wavelet transform components. Multiclass support vector machine (MSVM) is used for classification, and the best mother wavelet and number of decomposition level are chosen based on classification performance. To enhance the performance of the classification, a modified sequential forward subset selection approach is included by which the best statistical features are selected. In this approach, besides selecting the best subset of statistical features, the classification parameter is tuned according to the selected subset to achieve the best performance. The result of the proposed method is eventually compared with those results of classification performance using conventional subset selection. Experimental results show that the proposed method can detect rectifier faults effectively.