A handpiece maintenance system and method identifies a dental handpiece and operates in a diagnostic cycle to power the handpiece and determine predictive maintenance condition thereof. The handpiece maintenance system includes a temperature sensor and/or an acceleration sensor to measure the conditions of the handpiece during the diagnostic cycle. The predictive maintenance condition of the handpiece is based on data from the diagnostic cycle and other stored data for the identified handpiece. A system is also configured to determine a predictive maintenance condition of the handpiece based on sensor data read from a handpiece and historical usage data thereof.