In fault diagnosis of rotating machinery, Hilbert-Huang transform(HHT) is often used to extract the fault characteristic signal and analyze decomposition results in time-frequency domain. However, end effect occurs in HHT, which leads to a series of problems such as modal aliasing and false IMF(Intrinsic Mode Function). To counter such problems in HHT, a new method is put forward to process signal by combining the generalized regression neural network(GRNN) with the boundary local characteristic-scale continuation(BLCC).Firstly, the improved EMD(Empirical Mode Decomposition) method is used to inhibit the end effect problem that appeared in conventional EMD. Secondly, the generated IMF components are used in HHT. Simulation and measurement experiment for the cases of time domain,frequency domain and related parameters of HilbertHuang spectrum show that the method described here can restrain the end effect compared with the results obtained through mirror continuation, as the absolute percentage of the maximum mean of the beginning end point offset and the terminal point offset are reduced from 30.113% and27.603% to 0.510% and 6.039% respectively, thus reducing the modal aliasing, and eliminating the false IMF components of HHT. The proposed method can effectively inhibit end effect, reduce modal aliasing and false IMF components, and show the real structure of signal components accurately. Hilbert-Huang transform (HHT) is often used to extract the fault characteristic signal and analyze the decomposition results in time-frequency domain. However, end effect occurs in HHT, which leads to a series of problems such as modal aliasing and false IMF (Intrinsic Mode Function). To counter such problems in HHT, a new method is put forward to process signal by combining the generalized regression neural network (GRNN) with the boundary local characteristic-scale continuation (BLCC). Firstly , the improved EMD (Empirical Mode Decomposition) method is used to inhibit the end effect problem that occurred in conventional EMD. Secondly, the generated IMF components are used in HHT. Simulation and measurement experiment for the cases of time domain, frequency domain and related parameters of HilbertHuang spectrum show that the method described here can restrain the end effect compared with the results obtained through mirror continuation, as the absolute pe rcentage of the maximum mean of the beginning end point offset and the terminal point offset are reduced from 30.113% and27.603% to 0.510% and 6.039% respectively, thereby reducing the modal aliasing, and eliminating the false IMF components of HHT. The proposed method can effectively inhibit end effect, reduce modal aliasing and false IMF components, and show the real structure of signal components accurately.