Aiming at the difficulties in accurate reorganization of several weak faults currently, a composite fault diagnosis method based on higher density discrete wavelet transform and envelope spectrum is proposed. Firstly, the higher density discrete wavelet transform is used to decompose acquired vibration signals of rolling bearings. Then, the single-subband reconstruction is performed on the wavelet coefficients and scaling coefficients at each scale in order to solve frequency aliasing. Finally, the envelope spectra of all subband signals are calculated, and all faults can be recognized according to the characteristic frequencies of the typical faults. The proposed method is applied to the diagnosis of the rolling bearings with composite faults, and is compared with other common fault diagnosis method. The results show that the proposed method can be effectively used for the early composite fault diagnosis of rolling bearings.