The invention discloses a method of monitoring state of a power distribution area based on Bluetooth communication. The method is characterized by comprising the following steps of: step 1, designing a DSP (Digital Signal Processor) hardware platform; step 2, embedding a Bluetooth communication module into a terminal for monitoring the state of the power distribution area so as to implement the Bluetooth communication of the terminal for monitoring the state of the power distribution area; and step 3, designing a Bluetooth communication protocol so as to guarantee normal operation of system communication. According to the method of monitoring the state of the power distribution area based on the Bluetooth communication, through adding a communication manner and a debugging manner of an intelligent terminal for monitoring the state of the power distribution area, a worker can directly observe the running state and the environmental state of a distribution transformer and a circuit through a handheld Bluetooth terminal, and the problems of climbing operation and potential safety hazard caused thereby can be effectively solved to bring great convenience to an electric worker. The Bluetooth technology applied to an intelligent power distribution terminal system in the power industry is a brand-new application of the Bluetooth technology, and meanwhile, the power distribution terminal develops in intelligent, modern, highly-efficient and humanized directions.