A system and method for detecting erosion in turbine engine blades is provided. The blade erosion detection system includes a sensor data processor and a cluster analysis mechanism. The sensor data processor receives engine sensor data, including exhaust gas temperature (EGT) data, and augments the sensor data to determine sensor data residual values and the rate of change of the sensor data residual values. The augmented sensor data is passed to the cluster analysis mechanism. The cluster analysis mechanism analyzes the augmented sensor data to determine the likelihood that compressor blade erosion has occurred. Specifically, the cluster analysis mechanism performs a 2-tuple cluster feature analysis using Gaussian density functions that provide approximations of normal and eroded blades in a turbine engine. The 2-tuple cluster feature analysis thus provides the probability that the sensor data indicates erosion has occurred in the turbine engine.