Recent advancements in actuator technology, power electronics, sensors, and signal processing have created a rapid development of smart machine technologies for rotating machinery. Ranging from machine condition monitoring and diagnostics to full active control of machine behavior, the integration of electrical and computer systems has produced significant advances in machine performance and reliability. Magnetic bearings are a typical mechatronics product. The hardware is composed of mechanical components combined with electronic elements such as sensors and power amplifiers and an information processing part, usually in the form of a microprocessor. In addition, an increasingly important part is software, which specifies the coordination of bearing forces to sensed rotor motion and consequently dictates the dynamic properties of the complete system. The inherent ability for sensing, information processing, and actuation gives the magnetic bearing the potential to become a key element in smart and intelligent machines.