In this work, the implementation of an embedded system for real-time detection of rotor bar failures in induction motor has been realized. The device is a prototype measurement device which can detect broken rotor bars on the field without any additional setup or third-party software. This study has focused to derive a new method from previous studies on diagnosing of rotor failures and developed a microcontroller based embedded measurement device. A new method which is combining Fast Fourier Transform and Grey Relational Analyses to get best diagnosis results has been developed for an embedded system within a compact and low-cost measurement device. Although, there are some computer-based techniques and motor drivers that can detect internal failures of induction motor, there is no such a measurement device that can do all process by itself.