The invention relates to a master station simulation system for power collecting system fault terminal detection and a detection method. Compared with the prior art, the defect that a terminal fault cannot be conveniently detected in time is overcome. The system comprises a collection driving module, a protocol driving module and a protocol pool management module; the collection driving module is used for communication connection maintenance and data transmission between a master station and a terminal, the collection driving module and the protocol driving module are subjected to data interaction by sharing memory, the protocol pool management module starts the collection driving module and protocol driving module process according to user configuration information, and the operating conditions of the collection driving module and protocol driving module process are monitored and managed in real time. Accordingly, the data is collected by simulating communication of the master station and the terminal, a fault of an electrical information collecting system terminal can be positioned rapidly, and the fault that the terminal is online but cannot work normally can be judged out.