In this paper, an integrated fault diagnosis method is proposed to deal with fault location and propagation path identification. A causality graph is first constructed for the system according to the a priori knowledge. Afterward, a correlation index (CI) based on the partial correlation coefficient is proposed to analyze the correlation of variables in causality graph quantitatively. To achieve accurate fault detection results, the proposed CI is monitored by probability principal component analysis. Moreover, the concept of weighted average value is introduced to identify fault propagation path based on reconstruction-based contribution and causality graph after detecting a fault. Finally, the new proposed scheme would be practiced with real industrial HSMP data, where the individual steps as well as the complete framework were extensively tested.