Shared buffer ATM switches have been attractive since they can achieve a superior performance in terms of cell loss ratio and throughput with a relatively small buffer size. Shared multi-buffer structures have also been considered by several researchers to enhance the access speed of the cell memory for a large switch. High quality services, however, cannot be provided without reliable operation at each module comprising the ATM switches. In this paper, we present a novel on-line error monitoring technique for shared-buffer ATM switches. The technique detects almost all of the functional errors that could occur in the ATM switches. Moreover, it can detect errors with small hardware overhead and negligible time overhead. An early detection of functional errors in ATM switches could not only reduce the wasted bandwidth due to the transmission of erroneous cells, but greatly enhance the recovery time.