Reliability of the railway vehicle suspension system is of critical importance to the safety of the vehicle. It is very desirable to monitor the health condition and the performance degradation of the suspension system online, which offers the important information of the suspension system and is critically important for the condition-based maintenance rather than scheduled maintenance in the future. Advanced fault diagnosis method is one of the most effective means for the health monitoring of the suspension system. In this paper, taking the lateral suspension system as an examcple, the fault isolation issue for different component faults occurring in the suspension system is concerned. The sensor configuration for obtaining the vehicle state information and the mathematical model for the lateral suspension system are presented. Four fault features in the time domain and three fault features in the frequency domain are used for each sensor signal. Three different methods, Dempster-Shafer (D-S) evidence theory, Fisher discrimination analysis (FDA) and support vector machine (SVM) techniques are applied to the fault isolation problem. Simulation study is carried out by means of the professional multi-body simulation tool, SIMPACK. The simulation results show that these methods can isolate the considered component faults effectively with a high accuracy. The D-S evidence-based fault isolation approach outperforms the other two methods.