A detailed introduction of intelligent inspection and monitoring system for flexible manufacturing system (FMS) based on distributed artificial intelligence(DAI) is given in this paper. This paper deals with a multi-sensor system applied to mechanical fault diagnosing fusion pattern based on neural network, the uncertainty of diagnosis system can be decreased greatly. The methods for data preprocessing, features extraction and construction of the neural network are discussed. The real-time data sampling, information fusion and control, management and decision, and operating process of the complex industrial systems are researched. The schemes of distributed hierarchical intelligent control, methods of multi-sensor information fusion and controller expert fuzzy neural networks are proposed for complex industrial process. Applying the redundancy technology and multi-sensor information fusion technology, the synchronized automated data acquisition, processing and malfunction warning is realized by computer. The results of application in a textile machinery plant for the FMS showed the effectiveness of the proposed hierarchical intelligent control system.