A system for condition monitoring electric machine, including: a portable unit, being adapted for free movement around said electric machine; a magnetic field sensor, being adapted for measuring magnetic field intensity at at least one of a plurality points of a path of said free movement; a processing unit, being adapted for receiving at least one corresponding magnetic field intensity signal from said magnetic field sensor, comparing at least one magnetic field intensity value to at least one corresponding expected value, and determining, based on the comparison, if a fault is present in the electric machine; wherein: said magnetic field sensor and said processing unit are integrated into said portable unit; a first point of said plurality points of said path of said free movement is located in area where an axial magnetic flux leakage is present around said electric machine; a second point of said plurality points of said path of said free movement is located in area where a radial magnetic flux leakage is present around said electric machine; said portable unit is adapted to move to said first point; said magnetic field sensor is adapted to measure the magnetic field intensity for said axial magnetic flux leakage present at the first point; said portable unit is adapted to move to said second point; said magnetic field sensor is adapted to measure the magnetic field intensity for said radial magnetic flux leakage present at the second point; and said processing unit is adapted for comparing said magnetic field intensity signals for said axial magnetic flux leakage and said radial magnetic flux leakage and determining a type of said fault. a portable unit, being adapted for free movement around said electric machine; a magnetic field sensor, being adapted for measuring magnetic field intensity at at least one of a plurality points of a path of said free movement; a processing unit, being adapted for receiving at least one corresponding magnetic field intensity signal from said magnetic field sensor, comparing at least one magnetic field intensity value to at least one corresponding expected value, and determining, based on the comparison, if a fault is present in the electric machine; wherein: said magnetic field sensor and said processing unit are integrated into said portable unit; a first point of said plurality points of said path of said free movement is located in area where an axial magnetic flux leakage is present around said electric machine; a second point of said plurality points of said path of said free movement is located in area where a radial magnetic flux leakage is present around said electric machine; said portable unit is adapted to move to said first point; said magnetic field sensor is adapted to measure the magnetic field intensity for said axial magnetic flux leakage present at the first point; said portable unit is adapted to move to said second point; said magnetic field sensor is adapted to measure the magnetic field intensity for said radial magnetic flux leakage present at the second point; and said processing unit is adapted for comparing said magnetic field intensity signals for said axial magnetic flux leakage and said radial magnetic flux leakage and determining a type of said fault. said magnetic field sensor and said processing unit are integrated into said portable unit; a first point of said plurality points of said path of said free movement is located in area where an axial magnetic flux leakage is present around said electric machine; a second point of said plurality points of said path of said free movement is located in area where a radial magnetic flux leakage is present around said electric machine; said portable unit is adapted to move to said first point; said magnetic field sensor is adapted to measure the magnetic field intensity for said axial magnetic flux leakage present at the first point; said portable unit is adapted to move to said second point; said magnetic field sensor is adapted to measure the magnetic field intensity for said radial magnetic flux leakage present at the second point; and said processing unit is adapted for comparing said magnetic field intensity signals for said axial magnetic flux leakage and said radial magnetic flux leakage and determining a type of said fault.