The invention provides an integrated monitoring method and device for oil level and oil temperature of a distribution transformer. The oil temperature of the transformer is measured by a first acoustic surface wave sensor embedded into a floating part, environmental temperature is measured by a second acoustic surface wave sensor arranged on a shell, the floating part vertically moves as the oil level changes, a connecting rod drives an identification pipe to vertically move in the shell, a magnetic substance vertically moves along with the identification pipe, on or off of a magnetically controlled switch is controlled when the magnetically controlled switch on the shell is within or without the action range of the magnetic substance, the magnetically controlled switch is turned off whenthe oil level of the transformer is excessive low, environment temperature signals are interrupted, an antenna of the sensor is turned off, and oil level alarm signals are triggered. The integrated monitoring method is based on passive wireless intelligent monitoring technique of the acoustic surface wave sensors and magnetic control technique, and the method has the advantages of simple structure, comprehensive monitoring function, high integration level, convenience in installation and maintenance and the like.