Bearing defects are major causes for rotary machine breakdown, hence the dynamic behavior of bearing is crucial and important. This paper aims to present the dynamic response of bearing due various localized defects. To study parametric effect, three factors, Load, Speed and Defect size are chosen. Box-Behnkan method has been used to gettrials to plot response surfaces.A bearing test rig has been used for experimentation with high speed, which is capable of high loading to introduce and simulate industrial application environment.Vibration and torque data have been acquired using highprecision sensors and data acquisition system. FFT's Vibration peak and Torque Peak-to-Peak (P2P) have been taken as output parameter. It is observed that speed has significant effect on both outputs and affect the bearing performance more than load. Response surfaces shows that change in load has less impact on vibration amplitude, while small variation of speed considerably increases vibration values. On the other hand, both parameters,load and speed, has a strong impact on Peak-to-Peak torque.