Variational mode decomposition (VMD) is a recently introduced adaptive signal decomposition algorithm with a solid theoretical foundation and good noise robustness compared with empirical mode decomposition (EMD). There is a lot of background noise in the vibration signal of diesel engine. To solve the problem, a denoising algorithm based on VMD and Euclidean Distance is proposed. Firstly, a multi-component, non-Gauss, and noisy simulation signal is established, and decomposed into a given number K of band-limited intrinsic mode functions by VMD. Then the Euclidean distance between the probability density function of each mode and that of the simulation signal are calculated. The signal is reconstructed using the relevant modes, which are selected on the basis of noticeable similarities between the probability density function of the simulation signal and that of each mode. Finally, the vibration signals of diesel engine connecting rod bearing faults are analyzed by the proposed method. The results show that compared with other denoising algorithms, the proposed method has better denoising effect, and the fault characteristics of vibration signals of diesel engine connecting rod bearings can be effectively enhanced.