Heating cables, widely used in office buildings, factories, streets and railways, deteriorate in electrical insulation during operation. The insulation deterioration of heating cables leads to electric discharges that can cause electrical fires. With this background, this paper dealt with a condition monitoring technique for heating cables by the analysis of discharge signals to prevent electrical fires. Insulation deterioration was simulated using an arc generator specified in UL1699 under AC operation, and the characteristic and propagation of discharge signals were analyzed on a 100 meter-long heating cable. Discharge signals produced by insulation deterioration were detected as a voltage pulse because they are as small as a few mV and they are attenuated through propagation path.The frequency spectrum of discharge signals mainly existed in the range from 70 kHz to 110 kHz, and the maximum attenuation of the signal was 84.8% at 100 meters away from the discharge point. Based on the experimental results, a monitoring device, which is composed of a high pass filter with the cut-off frequency of 70 kHz, a comparator, a wave shaper and a microprocessor, was designed and fabricated. Also, an algorithm was designed to discriminate the discharge signal in the presence of noise, compared with the pulse repetition period and the number of pulse counts per 100ms. In the experiment, the result showed that the prototype monitoring device could detect and discriminate the discharge signals produced at every discharge point on a heating cable.