This work proposes the multilayered information fusion system MACRO (multilayer attribute-based conflict-reducing observation) and the µBalTLCS (fuzzified balanced two-layer conflict solving) fusion algorithm to reduce the impact of conflicts on the fusion result. In addition, a sensor defect detection method, which is based on the continuous monitoring of sensor reliabilities, is presented. The performances of the contributions are shown by their evaluation in the scope of both a publicly available data set and a machine condition monitoring application under laboratory conditions. Here, the MACRO system yields the best results compared to state-of-the-art fusion mechanisms.