In this paper, a fault in rolling bearing is diagnosed using time waveform analysis. In order to verify the ability of time waveform analysis in fault diagnosis of rolling bearing, an artificial fault is introduced in vehicle gearbox bearing: an orthogonal placed groove on the inner race with the initial width of 0.6 mm approximately. The faulted bearing is a roller bearing located on the gearbox input shaft - on the clutch side. An optimal Morlet Wavelet Filter and autocorrelation enhancement are applied in this paper. First, to eliminate the frequency associated with interferential vibrations, the vibration signal is filtered with a band-pass filter determined by a Morlet wavelet whose parameters are optimized based on maximum Kurtosis. Then, to further reduce the residual in-band noise and highlight the periodic impulsive feature, autocorrelation enhancement is applied to the filtered signal. The proposed techniques are used respectively to analyze the experimental signal of vehicle gearbox rolling bearing. The test stand is equipped with two dynamometers; the input dynamometer serves as internal combustion engine, the output dynamometer introduce the load on the flange of output joint shaft.