This disclosure relates to a system and method for monitoring a sheave bearing condition, and in particular relates to passenger conveyer systems, such as elevator systems, employing the system and method. An example passenger conveyer system includes a suspension member, and a sheave configured to rotate on a bearing. The suspension member is wrapped around at least a portion of the sheave. Further, the system includes a sensor mounted adjacent an end of the suspension member, and a controller configured to determine a condition of the bearing based on an output of the sensor.