As a key unit with textile coil process technology, spinning-machine's spindles composes of a braking switch, a threephase current motor, rolling bearings and a rotary cup. Aiming at on line monitoring and fault diagnosis, a distributed monitoring system was proposed for real-time data collection and high-speed transmission. In this system, an IPC worked as an upper deck computer and many single chip processors served as bottom controllers that working status data collection and transmission can be conveniently conducted. With the features of bulk processing data and large quantities of controlled nodal points in a workshop condition, the distributed monitoring system was developed with adoption of particular approaches such as a distributed configuration with PCI bus for real time data collection and highspeed transmission, logic compression algorithm for data processing, etc. Therefore this system realizes reliable and high-speed bulk data collection, transmission and processing to meet needs of real-time monitor and control of spindle units.