In this paper, we propose a diagnostic test generation method in conjunction with an efficient sequential SAT-based diagnosis procedure to precisely identify multiple defective signals which can jointly explain the circuit?s faulty behavior. This method can be applied after any existing state-of-the-art diagnosis process to further improve the diagnosis resolution. The proposed diagnosis method generates limited-cycle sequential tests for SAT-based diagnosis which results in significantly higher diagnosis accuracy for multiple faults. The experimental results demonstrate the effectiveness of the proposed method.