The invention relates to an integrated failure indication and condition monitoring logical judgment method. The method comprises the following steps: (1) adopting a detection device to perform failure detection, using an MSP430F149 singlechip, and starting failure detection with the monitoring input value smaller than 5% of rated voltage of a busbar; (2) converting the current value of a current transformer into a voltage value, and taking a sample every 4 ms for 100 times; taking every 10 samplings as one group, and figuring out a slope value K through the least square method; (3) comparing two adjacent values K, determining sudden change of current and real failure when the rate of change is greater than X; determining gradual change of current and reversed power transmission failure of an electric motor when the rate of change is smaller than X; (4) taking one I/O interface of the singlechip as an output port, and connecting the I/O interface and the display panel of a failure indicator, wherein when the real failure is detected, the I/O interface outputs up level and the control panel gives an alarm; and (5) connecting two temperature sensors and two A/D interfaces, outputting a digital value through the singlechip, and displaying the temperature of a cable connector through the digital display screen on the panel. The failure judgment logic of the method is changed, and two kinds of fake failures can be shielded, so that the method plays an important role in true running of distribution automation.