The objective are to develop a body of knowledge in methodology and analytical tools for on-line tracking of the synchronous machine parameters and turns ratio of stator and field windings from the standpoint of system identification. The significance of this research is that engineers at utility companies can use the proposed estimation technique to identify the machine parameters for use in power systems planning and stability studies. Furthermore, by tracking the machine parameters and turns ratio of stator and field windings, the incipient faults of synchronous machines can be detected in real-time. The on-line detection of imminent failure will facilitate orderly shut-down of the generator for repair. In addition, by avoiding forced outage, the control power system is assured. Finally, the results of this research can be used by power system control engineers to accurately predict and control the dynamic performance of electronically controlled future power systems.