Hysteresis behaviour of the magnetic materials is an interesting physical concept and has important practical applications in physics and engineering. In this study, a new approach is developed to evaluate the quality of magnetic cores, based on the measured dynamic hysteresis loop. In this study, artificial inter-laminar faults of different configurations were applied on stacks of four standard Epstein size laminations of 3% grain oriented silicon steel. Dynamic hysteresis loop of the samples was measured and analysed over a range of magnetising frequency and flux density, to calculate the extra power losses caused by the artificial faults. The results show an accurate evaluation of the extra power loss compared to the bulk measurement, with a maximum difference of <4%.