А method based on comparing oscilloscope patterns of operational parameters with reference curves is one of the most promising methods of diagnosing hydraulic systems among the existing ones. Its implementation does not allow accurate localization of the faulty unit in the system and quantitative estimation of the magnitude of the fault. To eliminate these shortcomings, it is advisable to use simulation models of hydraulic units, taking into account typical faults of a hydraulic system. Their use makes it possible to evaluate the effect of a particular malfunction on the change of dynamic parameters at the stage of mathematical modeling. As a result of the analysis of statistical information and literary sources, characteristic faults of hydraulic systems are identified. Their causes and the impact on the operation of hydraulic units are examined. Simulation models of units taking into account typical faults are described in the Matlab / Simscape software package. They are implemented using a typical hydraulic system as an example. Dynamic characteristics of a hydraulic system in a healthy condition and those of a system with one of the characteristic faults are compared.