Although signed directed graphs (SDG) have been widely used for modeling control loops, due to lack of adequate understanding of SDG-based steady-state process modeling, special and cumbersome methods are used to analyze control loops. In this paper, we discuss a unified SDG model for control loops, in which both disturbances (sensor bias, etc.) as well as structural faults (sensor failure, controller failure, etc.) can be easily modeled under steady-state conditions. Various fault scenarios such as external disturbances, sensor bias, controller failure, etc. have been thoroughly analyzed. A new algorithm for steady-state fault diagnosis using the SDG model for the steady-state system, that uses a combination of forward- and backward-reasoning, is proposed. Three case studies are presented to show the utility of the steady-state SDG model for fault diagnosis. A tank-level control system is used as the first case study. The second case study deals with fault diagnosis of a multi-stream-control led CSTR. The third case study deals with fault/failure diagnosis in a process flowsheet containing a CSTR with one control loop and a flash vaporizer with three control loops. (c) 2005 Elsevier Ltd. All rights reserved.