An on-line integrated fault diagnosis method of power grid based on three-state(steady, dynamic and transient state)data is proposed. Firstly, proceeding from the data characteristic and the status quo of dispatch automation, an analysis is made of the necessity of on-line fault diagnosis using the three state data. Secondly, starting from the aspects of accuracy, real-time, comprehensiveness of on-line fault diagnosis, a technology of data mining and co-processing based on multi-source information is proposed. Lastly, a look-ahead of the future developing direction in the field of on-line fault diagnosis is given.