A novel method based on a hybrid incremental modeling approach has been designed and applied to imbalance detection in ultra-high precision rotating machines. The model is obtained by a two-step iterative process that combines an overall model (least-squares fitting) with a local model (fuzzy k-nearest-neighbour) to take advantage of their complementary capacities. Three normalization strategies of evaluating the effect on accuracy are analyzed. A comparative study demonstrates that the hybrid incremental model provides better error-based performance indices for detecting imbalance than a nonlinear regression model and an adaptive neural-fuzzy inference system model. The suitability of Mahanolobis normalization for hybrid incremental modeling is also demonstrated in this case study. The proposed strategy for imbalance detection is simple, fast, and non-intrusive, reducing the deterioration in the performance of ultra-high precision rotating machines due to vibrations.