The invention discloses an intelligent tramcar system based on electronic fence intrusion alarm protection and an operation method thereof. When foreign matters invade, the electronic fence cable cangenerate non-critical high-voltage pulses, the pulse host transmits the alarm signal of the foreign matter intrusion of the electronic fence and the distance of the fault point to a control center through the wireless network, the display unit in the control center can pop out a monitoring picture of the foreign matter invasion area, the vehicle-mounted device acquires the alarm information of theforeign matter intrusion of the electronic fence, when the position of the fault point does not meet the preset driving safety requirement, the driver is reminded to take an emergency brake in time,and the driving safety is guaranteed. According to the invention, through the combined monitoring of the software and hardware, the extraction of the fault positioning information and the uploading ofthe fault information of the electronic fence during abnormal disconnection are realized, and the control center can be in linkage with the auxiliary lighting system and the video monitoring system,and the problem that the tramcar has no independent routes and is prone to being collided with pedestrians/vehicles can be overcome, and the safety blocking function is guaranteed.