The suitable condition of an onload tap changer (OLTC) is essential for the operation of a power transformer. It is extremely desirable to have some indicators to assess the OLTC condition, especially if these indicators are capable of being used in an online monitoring system that does not affect the normal operation of the transformer. This paper describes a methodology by using envelope analysis based on the Hilbert transform and orthogonal decomposition of the wavelet to determine the main diagnostic parameters for power transformer OLTC condition assessment by means of vibration measurements during the tap changer operation.