The loose part monitoring system (LPMS) in the primary circuit of the WWER-440/WWER-1000 as in any other PWR or BWR type of NPP is one of the fundamental and essential to safety diagnostic tools. The purpose of the system is to detect, localize and analyze detached or loose metal pieces. When the metal impact occurs it causes the mechanical vibration of the structures and sensors detect a burst signal. The aim of this work is to show the potential of using modern signal processing methods in enhancing the LPMS performance by solving the tasks of noise cancellation, time of arrival detection, discrimination between real and faulty alarms, and loose metal piece mass estimation.