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In order to solve the problem of dasiaover-fittingpsila, local optimal solution existing in BP neural network, particle swarm optimization-based RBF neural network (PSO-RBFNN) is proposed. Particle swarm optimization (PSO) is an intelligent swarm optimization method, which not only has strong global search capability, but also is very easy to implement. Thus, PSO is used to determine free parameters of RBF neural network. Finally, the effectiveness and correctness of this method are validated by the result of fault diagnosis cases.