The invention discloses a local discharge monitoring method for multiple intensively arranged power equipment. The local discharge monitoring method comprises the following steps: setting a high-frequency mask bus ring, and arranging multiple parallel connection points on the high-frequency mask bus ring; respectively and correspondingly mounting multiple sensing terminals on the power equipment in a substation; connecting a two-channel data collection unit with the high-frequency mask bus ring so as to enable local discharge signals monitored by the sensing terminals to be transmitted to the two-channel data collection unit through a first path and a second path respectively along the high-frequency mask bus ring; setting a length difference between the first path and the second path corresponding to the parallel connection points to be different values so as to generate different time differences; and positioning the local discharge signals according to the different time differences. According to the local discharge monitoring method, the multiple intensively arranged power equipment needing to be monitored in the whole substation can be synchronously monitored in an on line manner, and discovering and removing insulation defects of the power equipment in time so as to improve safety running of the whole substation.