This paper review the effectiveness of the parity space approach

to identify faults or disturbance in a system. The most commonly

used is the observer based procedures, and redundancy relationship

method. This involves analytical mathematical analysis of

geometry and bilinear algebra. Then, technological advances which

require complex computation such as artificial intelligence and

genetic algorithm had made tremendous improvement to fault

Detection and Isolation (FDI) analysis. Dynamic Parity Space

Approach was studied for a discrete state-space model. Important

data will be extracted using this approach especially for residual

generation which is the backbones of FDI analysis. Subsequently,

at each time instant k, the generated residuals will form a matrix

that will define the fault signature. It is remarkable that this

approach is proven in this study to be effective in diagnosis and

faults isolation.