This paper presents a distributed Bayesian fault diagnosis scheme for physical systems. Our diagnoser design is based on a procedure for factoring the global system bond graph (BG) into a set of structurally observable bond graph fac- tors (BG-Fs). Each BG-F is systematically translated into a corresponding DBN Factor (DBN-F), which is then used in its corresponding local diagnoser for quantitative fault detec- tion, isolation, and identification. By construction, the ran- dom variables in each DBN-F are conditionally independent of the random variables in all other DBN-Fs, given a subset of communicated measurements considered as system inputs. Each DBN-F and BG-F pair is used to derive a local diag- noser that generates globally correct diagnosis results by lo- cal analysis. Together, the local diagnosers diagnose all single faults of interest in the system. We demonstrate on an electri- cal system how our distributed diagnosis scheme is compu- tationally more efficient than its centralized counterpart, but without compromising the accuracy of the diagnosis results.