Expert systems are explained and their two types, forward-chaining and backward-chaining, are described. It is stated that on-line expert systems, which report continuously or intermittently on machinery conditions and advise operators on procedures to follow, are still about five years away. Many of the inputs to these programs will come directly from machine-mounted sensors. These on-line inputs are augmented by statistical and historical data stored in computer memory. The three-part development program recently undertaken by the Central Electricity Generating Board in Britain (data acquisition, statistical analysis, and expert systems) is described. Several examples of application of expert systems in monitoring power plant machinery are presented.