The invention relates to a closed-loop testing system and method for an integrated monitoring system intelligent alarm application. The system is technically characterized by comprising an upper computer and a lower computer, wherein the upper computer and the lower computer perform file downloading and command interaction operation through an internal protocol; the upper computer comprises a visual signal configuration module, a scheduling protocol analysis simulation module and an evaluation module; and the lower computer comprises an IEDs server simulation module. According to the closed-loop testing system and method, by the adoption of a testing process full-closed-loop mode, standard testing can be performed on various intelligent alarm manufacturers, expert library judgment standards of intelligent alarms are unified, derivation processes of the intelligent alarms are unified, derivation results of the intelligent alarms are unified, specific formats of intelligent alarm briefings are unified, transmission modes of the intelligent alarm briefings and schedules are unified, and an active role is played for application and popularization of the intelligent alarms.