A new fuzzy logic fault diagnosis method is proposed. In this method, fuzzy equations are employed to estimate the component state of a system based on the measured system performance and the relationship between component state and system performance which is called as "performance-parameter" knowledge base and constructed by expert. Compared with the traditional fault diagnosis method, this fuzzy logic method can use humans intuitive knowledge and dose not need a precise mapping between system performance and component state. Simulation proves its effectiveness in fault diagnosis. Then, the reliability analysis is performed based on the fuzzy logic method.