Rolling element bearings are one of the key components of rotating machinery. The study of its fault vibration characteristics is significantly important for fault detection and diagnosis of rotating machines. In this paper, the state-of-the-art development of models of rolling element bearing with local faults is reviewed. Three main model types of rolling element bearings with local faults in recent years are summarized, including a pulse sequence model, a dynamic analytical model, and a multi-body dynamic model based on a finite element method. The main advantages and limitations of these modeling methods of rolling element bearings with local faults are described. Finally, research on local faults modeling of rolling element bearings is summarized and the possible development directions of the modeling of rolling element bearings with local faults in the future are pointed out.