In recent years, there has been a rapid growth in the development of telemedicine systems and monitoring devices for patients with chronic diseases which require continuous telemonitoring treatment. However, most of these systems only provide telemonitoring services or basic information about the health condition of the patients. For this reason, an Intelligent Home Health Care Embedded System (IHHCS), which can provide patients with diagnosis about their health status at home, has been developed. This system mainly consists of three parts: an algorithm for processing the extracted parameters, a novel embedded medical transducer parameter detector/extractor, and an ARM-cored structure embedded with the µClinux system. This novel parameter detection and extraction algorithm, which utilizes the state-of-the-art wavelet signal processing technique, is built to interlink the algorithm and the ARM-cored system for elevating the overall performance of IHHCS. As a result, different types of pluggable medical transducers (e.g. electrocardiograph, sphygmomanometer and blood glucose meter) for patients with different illnesses can be flexibly connected to the interface of the embedded ARM-cored system. This approach introduces great flexibility to the IHHCS and enhances the versatility of the telemedicine system and monitoring devices.