The paper presents a strategy based on the principal component analysis (PCA) method, which is developed to detect and diagnose the sensor faults in typical air-handling units. Sensor faults are detected using the Q-statistic or squared prediction error (SPE). They are isolated using the SPE and Q-contribution plot supplemented by a few simple expert rules. Two PCA models are built based on the heat balance and pressure-flow balance of the air-handling process, aiming at reducing the effects of the system non-linearity and enhancing the robustness of the strategy in different control modes. The fault isolation ability of the method is improved using the multiple models. Simulation tests and site data from the building management system (BMS) of a building are used to verify the PCA-based strategy for automatic validation of AHU monitoring instrumentations and detecting/isolating AHU sensor faults under typical operating conditions. The robustness of the PCA-based strategy in detecting/diagnosing AHU sensor faults is verified. Effects of sensor faults and the strategy energy efficiency of an automated AHU are evaluated using simulation tests. (C) 2003 Elsevier B.V. All rights reserved.