The invention discloses an intelligent fault monitoring terminal and a monitoring method thereof. The intelligent fault monitoring terminal comprises an intelligent fault monitoring terminal body, a data center and a workstation, a client side provides two modes of WEB inquiry and WAP (wireless application protocol) inquiry of a computer, and the intelligent fault monitoring terminal body and the data center are connected through GPRS/CDMA (general packet radio service/code division multiple access). The monitoring method includes: utilizing working frequency fault current to position a fault section; performing traveling wave positioning in the fault area. The intelligent fault monitoring terminal is mounted on a power transmission line lead, can capture traveling wave signals at the fault moment nearly and can analyze different reasons causing fault tripping of a power transmission line to realize recognition of lightning stroke fault, non-lightning-stroke fault and lightning shielding fault and counterattack in lightning stroke fault. The intelligent fault monitoring terminal is mounted on the power transmission line lead and can quickly and accurately monitor faulted positions of the power transmission line and diagnose the fault reasons.