The problem signature extraction technique extracts problem signatures from trace data collected from an application. The technique condenses the manifestation of a network, software or hardware problem into a compact signature, which could then be used to identify instances of the same problem in other trace data. For a network configuration, the technique uses as input a network-level packet trace of an application's communication and extracts from it a set of features. During the training phase, each application run is manually labeled as GOOD or BAD, depending on whether the run was successful or not. The technique then employs a learning technique to build a classification tree not only to distinguish between GOOD and BAD runs but to also sub-classify the BAD runs into different classes of failures. Once a classification tree has been learned, problem signatures are extracted by walking the tree, from the root to each leaf.