The invention discloses a method for lowering power consumption of a chip by adopting a distributed monitoring circuit. The method comprises the following steps: firstly, dividing the chip into multiple voltage regions according to functional modules, wherein multiple monitoring circuits are arranged in each voltage region; secondly, respectively setting a voltage threshold on all the monitoring circuits according to respective functions, if a monitored voltage is greater than or equal to a self voltage threshold, outputting 1, and otherwise outputting 0; and thirdly, executing a voltage regulation strategy in any voltage region, including i, lowering a working voltage when outputs of all the monitoring circutis in the voltage region are 1; ii, maintaining an existing voltage when output of only one monitoring circuit in the voltage region is 0; and iii, when outputs of more than one monitoring circuit in the voltage region is 0, increasing the working voltage until the outputs of allthe monitoring circuits in the voltage region are 1. The method disclosed by the invention can obtain a detailed and accurate circuit working condition in each voltage region and adjust a voltage of each voltage region in real time.