An intelligent process monitoring and fault diagnosis environment has been developed by interfacing multivariate statistical process monitoring (MSPM) techniques and knowledge-based systems (KBS) for monitoring multivariable process operation. The real-time KBS developed in G2 is used with multivariate SPM methods based on canonical variate stare space (CVSS) process models. Fault detection is based on T-2 charts of state variables. Contribution plots in G2 are used for determining the process variables that have contributed to the out-of-control signal indicated by large T-2 values, and G2 Diagnostic Assistant (GDA) is used to diagnose the source causes of abnormal process behavior. The MSPM modules developed in Matlab are linked with G2. This intelligent monitoring and diagnosis system can be used to monitor multivariable processes with autocorrelated, cross-correlated, and collinear data. The structure of the integrated system is described and its performance is illustrated by simulation studies.