It is an urgent project to realize online and overall condition monitoring and timely fault diagnosis for large-scale mobile and complex equipment. Moreover, most of the existing large-scale complex equipment has quite insufficient accessibility of examination, although it still has quite a long service life. The decentralized and overall condition monitoring, as a new concept, is proposed from the point of view of the whole system. A set of complex equipment is divided into several parts in terms of concrete equipment. Every part is processed via one detecting unit, and the main detecting unit is connected with other units. The management work and communications with the remote monitoring center have been taken on by it. Consequently, the difficulty of realizing a condition monitoring system and the complexity of processing information is reduced greatly. Furthermore, excellent maintainability of the condition monitoring system is obtained because of the modularization design. Through an application example, the design and realization of the decentralized and overall condition monitoring system is introduced specifically. Some advanced technologies, such as, micro control unit (MCU), advanced RISC machines (ARM), and control area network (CAN), have been adopted in the system. The system's applicability for the existing large-scale mobile and complex equipment is tested.