Ferrograph analysis has been adopted over decades for determining the root causes of on-going wear faults. After decades of manual operation, this traditional technique is being driven by intelligent algorithms for automatic identification of wear debris. However, the accuracy and robustness of this algorithm remain marginalized when applied in industries due to various types and color blurry of particles. To address this issue, this paper introduces an automatic ferrograph analysis model with a segmentation method and a two-level classification strategy. In order to obtain wear particles from the color ferrograph image, an adaptive Otsu threshold is adopted in three channel images to solve the color blurry in particle segmentation. By grouping particle parameters into shape and morphology ones, a two-level identification strategy is proposed. The first one is to classify rubbing, cutting, and spherical particles, referring to the fuzzy approach degree of shape parameters. In the second level, the shape-close particles are classified with imperceptible textures and back propagation neural network (BPNN). These objective parameters are constructed by applying the principal component analysis into seven texture features and inputted into a BPNN-based model to classify fatigue and severe sliding particles. In order to train the BPNN, more than 100 ferrograph images are sampled together, whereby standard ferrograph analysis is performed on the particle identification. The performance of the identification exhibits an accuracy exceeding 90% for rubbing, cutting, and spherical particles, whereas about 80% accuracy has been registered for both severe sliding and fatigue particles.