This paper discusses the application of virtual instrument technology in condition-based maintenance of Chemical equipment, and provides technical support for power system automation. The status of Chemical equipment is analysed by virtual instrument technology, and the problems found are judged comprehensively to determine the fault point and location. At the same time, the condition monitoring system matched with virtual instrument is established to eliminate the faults more accurately and efficiently. The results show that virtual instrument technology can monitor the status of equipment in real time, determine the fault point effectively, predict the occurrence rate of the fault, and help the relevant personnel to repair. Therefore, virtual instrument technology has an objective application value in condition-based maintenance of Chemical equipment, reducing labour costs and equipment failure rate.