A method is provided for improved diagnostics of an internal combustion engine that includes cylinders, a crankshaft, crankshaft rotation angle sensor (CRAS), a vibro-sensor, a logic-mark sensor, each sensor produces respective signals. The method contemplates receiving the signals dividing them into a plurality of idling cycles, determining the crankshaft's position based on stochastic filtration, quasicontinuous representation of the signal, the Kalman filter, a nonlinear stochastic filter, based on CRAS characteristics and quasicontinuous representation, determining the Riesz generator basis function based on technical characteristics of the vibro-sensor, secondary discreeting of the signals with a replacement of argument, discreeting of a reciprocal function, obtaining a discrete wavelet transform, obtaining a continuous wavelet transform, obtaining a discrete wavelet transform of a reciprocal function, and producing output data. Two-dimensional arrays are divided relatively to predetermined indexes in the discrete transforms, an empirical probability distribution function is computed. Further optional diagnostic processing is provided.