A substation monitor system and monitoring method comprises a housing with a cover plate, A circuit board is arranged in the shell, and a controller is arranged on the circuit board. The controller isrespectively connected with an interface circuit module, a wireless remote communication module and a data storage module. The interface circuit module is used for connecting external equipment. Theinterface circuit module is respectively connected with a camera, a temperature and humidity sensor, a smoke sensor and a vibration sensor. The controller is connected with the lighting lamp through aswitch control module, a travel switch is arranged at the closed position of the cover plate and the shell, and the travel switch is connected with an alarm circuit. The scheme can monitor the temperature, humidity, smoke and vibration of the substation, and then make further verification according to the monitoring situation, finally judge whether there is a danger or not, and finally send out alarm information to avoid the further expansion of the danger.