The progressive penetration level of Distributed Generation (DG) is destined to cause deep changes in the existing distribution networks no longer considered as passive terminations of the whole electrical system. A possible solution is the realization of small networks, namely the Micro-Grids, reproducing in themselves the structure of the main production and distribution of the electrical energy system. In order to gain an adequate reliability level of the micro-grids the individuation and the management of the faults with the goal of maintaining the micro-grid operation (fault tolerant operation) is quite important. In the present paper after the introduction of the aims of several diagnostic systems, the main available diagnostic techniques are examined with particular references to those applied to the fault diagnosis of the electrical machines and finally the Authors also present an approach for the fault tolerant exercise of the micro-grid.