Acoustic emission (AE) is used for the condition monitoring and fault diagnosis of various components like gear, bearing, machine tool etc. The experimental studies have been presented which shows the capability of AE to fault/defect detection on bearings. The presence of defect influences the AE value. The experimental investigation have been conducted to find out the effect of operating parameters such as load, speed, etc. on AE generated during operating condition of bearing. But to the best knowledge of authors, there is lack of mathematical model to comprehend the actual physical mechanism in the bearing for the same. In this study, a theoretical model is developed to understand the influences of operating parameters on energy of AE generated in rolling element bearing. The model has been developed on the bases of asperities interaction between surfaces of inner race, outer race and rolling element of bearing using Hertzian contact approach, statistical concepts, contact load distribution during the load zone and lubrication effects. The model is extended for the defected bearing by considering the defect on inner race, outer race and rolling element to understand the physics of the influence of defect on AE. The developed model has been validated with the experimental studies and satisfactory results have been perceived. (C) 2017 Elsevier Ltd. All rights reserved.