The principle of dynamic balance test of spindle assembly was analyzed based on mechanical equilibrium theory. Data was acquired by using Holzer sensor, and useful information was extracted by using a cross correlation technique. The hardware test system was constructed by using the single-chip computer as data computing processor, and the program structure of the test system was designed. Experimental results show that testing accuracy of the system can meet the use of general machinery industry requirements, and basically realize the purpose of automated measurement and intelligent analysis.