The embodiments of the present invention provide a tunnel fault detection method and a traffic engineering (TE) node. The method includes: receiving, by a traffic engineering TE node, a link fault report packet; determining, by the node, a faulty link in which a fault occurs according to the link fault report packet; detecting, by the node, whether one or more tunnels which use the node as an ingress node and pass through the faulty link exist; and identifying the tunnels as faulty tunnels if the one or more tunnels which use the node as the ingress node and pass through the faulty link exist. In the embodiments of the present invention, the TE node can detect all faulty tunnels at a time, and it is not necessary to wait until the fault notification based on each tunnel is received and then the faulty tunnel is identified one by one. Therefore, compared with the prior art, the present invention can detect the faulty tunnels in time in a network in which numerous tunnels are configured on a TE node.