A method for detecting and isolation a leak in a hydraulic system having a supply pump serving at least one control valve is disclosed. In one embodiment, the control valve has multiple work sections. In step of the method, the hydraulic system is activated. In another step, an actuation command for at least one of the work sections is received, for example from a human-to-machine interface. Subsequently, the method may include generating a flow demand for the work sections for which an actuation command has been received. The method also includes the step of implementing at least one of a first, second, third, and fourth leak detection and isolation protocol to detect and isolate a leak between the pump and the control valve assembly, a leak between the reservoir and the control valve assembly and a leak between the at least one work circuit and the control valve assembly.
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