A method of diagnosis and life prediction of an electro-mechanical system, the method comprising: receiving sensor data from a plurality of sensors (482, 484) associated with operation of the electro-mechanical system; determining at least one system response by the electro-mechanical system associated with at least one failure mode from the sensor data, wherein the sensor data is indicative of the at least one failure mode of the electro-mechanical system; receiving at least one simulated response associated with the at least one failure mode from a system model of the electro-mechanical system, wherein the at least one failure mode is indicative of a way in which the electro-mechanical system fails; generating a hybrid model of the electro-mechanical system based on the at least one system response and the at least one simulated response, wherein the hybrid model combines the at least one system response and the at least one simulated response; identifying presence of at least one failure in the electro-mechanical system based on the hybrid model, wherein the at least one failure is indicative of initiation of degradation of the electro-mechanical system; predicting a life trend of the electro-mechanical system based on the identified at least one failure using degradation principle, wherein the life trend includes life of the electro-mechanical system with and without failure mode and a remaining life trend, wherein the remaining life trend is indicative of a performance of the electro-mechanical system prior to the at least one failure and post the at least one failure; predicting the performance of the electro-mechanical system based on the remaining life trend; the method being characterized by: predicting a further failure in the electro-mechanical system based on the predicted performance, wherein the further failure is a potential failure in the electro-mechanical system subsequent to the at least one failure; and generating a control command to the electro-mechanical system for delaying the further failure of the electro-mechanical system, wherein the control command is based on the predicted further failure. receiving sensor data from a plurality of sensors (482, 484) associated with operation of the electro-mechanical system; determining at least one system response by the electro-mechanical system associated with at least one failure mode from the sensor data, wherein the sensor data is indicative of the at least one failure mode of the electro-mechanical system; receiving at least one simulated response associated with the at least one failure mode from a system model of the electro-mechanical system, wherein the at least one failure mode is indicative of a way in which the electro-mechanical system fails; generating a hybrid model of the electro-mechanical system based on the at least one system response and the at least one simulated response, wherein the hybrid model combines the at least one system response and the at least one simulated response; identifying presence of at least one failure in the electro-mechanical system based on the hybrid model, wherein the at least one failure is indicative of initiation of degradation of the electro-mechanical system; predicting a life trend of the electro-mechanical system based on the identified at least one failure using degradation principle, wherein the life trend includes life of the electro-mechanical system with and without failure mode and a remaining life trend, wherein the remaining life trend is indicative of a performance of the electro-mechanical system prior to the at least one failure and post the at least one failure; predicting the performance of the electro-mechanical system based on the remaining life trend; the method being characterized by: predicting a further failure in the electro-mechanical system based on the predicted performance, wherein the further failure is a potential failure in the electro-mechanical system subsequent to the at least one failure; and generating a control command to the electro-mechanical system for delaying the further failure of the electro-mechanical system, wherein the control command is based on the predicted further failure. predicting a further failure in the electro-mechanical system based on the predicted performance, wherein the further failure is a potential failure in the electro-mechanical system subsequent to the at least one failure; and generating a control command to the electro-mechanical system for delaying the further failure of the electro-mechanical system, wherein the control command is based on the predicted further failure.