The invention provides a distributed optical fiber for monitoring the temperature, stress and deformation of a frozen wall and an embedding method of the distributed optical fiber. The distributed optical fiber comprises at least two optical fiber sensing carriers which are stacked along a longitudinal direction; the outer side of each optical fiber sensing carrier is provided with U-shaped loop optical fibers and a temperature compensation optical cable along the length direction of the optical fiber sensing carrier; and protective steel bars are respectively arranged at the lateral directions of the U-shaped loop optical fibers and the temperature compensation optical cable. The structure and embedding process of the distributed optical fiber are simple. With the distributed optical fiber and the embedding method of the distributed optical fiber of the invention adopted, problems existing in aspects such as arrangement technique, protection structure and curing method in a frozen wall informationized monitoring process can be solved, and monitoring on the temperature, two-dimensional direction stress and deformation strangeness of the frozen wall can be accurately realized, and the survival rate of optical fiber cables can be improved.