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• Features are selected from the perspectives of machine learning and field application. • Stepwise FS path combining optimization with machine learning algorithms is proposed. • Best performance using existing features and corresponding feature set are revealed. • Recommendations for feature supplementation to further improve performance are given. • Feature sets are verified to be general and effective by experiments and comparisons. Fault diagnosis (FD) is vital for enhancing chiller efficiency and reliability. Feature selection (FS) is the prerequisite and key to diagnose faults. This paper addresses two intriguing questions from machine learning (ML) and field perspectives. Question-1: Based on commonly installed sensors, what is the best performance that the FD models based on ML algorithms can achieve, and what features are relevant? Question-2: Which features can enhance diagnostic performance? and to what extent? This paper designs a stepwise FS process. First, a field investigation is conducted to gather information on sensors installed in actual chillers. Based on actual field installation, feature calculation cost, and thermodynamic mechanism, three levels of initial feature libraries are created, each containing an increasing number and type of features. An FS method combining an optimization algorithm with an FD model based on ML algorithm is proposed. In the end, the insight into the best diagnostic performance achieved by ML-based models using existing sensors and the corresponding optimal feature subsets is provided, and recommendations for feature supplementation to further improve diagnostic performance are also provided. Compared with other literature-reported feature subsets, the recommended feature subsets show better generality and effectiveness on seven commonly used ML-based models. [ABSTRACT FROM AUTHOR]