The invention discloses a 10kV cable fault simulation device and fault simulation method. The fault simulation device comprises a shell, and elbow type joints at an incoming line end, connecting wire cores, a card cage and elbow type joints at an outgoing line end arranged on the shell, wherein four elbow type joints of the incoming line end and four elbow type joints of the outgoing line end are electrically connected with the card cage through connecting wire cores at the inside, and moreover, the elbow type joints of the incoming line end and the elbow type joints of the outgoing line end are connected with an external cable, the device is connected with a practical cable circuit in series, and fault simulation plugins are assembled in the card cage. According to the 10kV cable fault simulation device and fault simulation method, different kinds of 10kV cable faults are simulated through assembling the fault simulation plugins in the card cage, the employee is convenient to perform fault detection training, the training efficiency is improved, and the training cost is saved.