Unfortunately, motor current signature analysis (MCSA) cannot detect the small degrees of the purely static eccentricity (SE) defects, while the air-gap magnetic flux signature analysis (FSA) is applied successfully. The simulation results are obtained by using time stepping finite elements (TSFE) method. In order to show the impact of magnetic saturation upon the diagnosis of SE fault, the analysis is carried out for saturated induction motors. The index signatures of static eccentricity fault around fundamental and PSHs are detected successfully for saturated motor.