The invention relates to a processing method of equipment vibration signal, including the following steps: step (1), the equipment vibration signal is measured; step (2), the equipment vibration signal is processed, concrete steps include: step (2.1), the equipment vibration signal is decomposed into more than four independent frequency bands by second generation wavelet packet technology; step (2.2), energy of each decomposed frequency band is respectively calculated; step (2.3), the frequency band with energy maximum is selected, and autoregressive spectral processing is carried out on the corresponding second generation wavelet decomposed signal thereof, so as to obtain autoregressive spectrogram; step (3), equipment failure hidden trouble is judged according to the autoregressive spectrogram. In the processing method of the invention, after variable working condition equipment vibration signal is processed, a waveform graph beneficial to judgement can be obtained, thus creating condition for accurately judging equipment failure hidden trouble.