- In general, fault dictionary is prevented from practical applications for its extremely large size. Several previous works are proposed for the fault dictionary size reduction. However, they might not be able to handle today's million-gate circuits due to the high time and space complexity. In this paper, we propose an algorithm to significantly reduce the size of fault dictionary while still preserving high diagnostic resolution. The proposed algorithm possesses extremely low time and space complexity by avoiding constructing the huge distinguishability table, which inevitably boosts up the required computation complexity. Experimental results demonstrate that the proposed algorithm is fully capable of handling industrial million-gate large circuits in a reasonable amount of runtime and memory.