A distributed Automatic Power Optimization (APO) system and method are provided. The distributed APO system includes: one or more APO modules and a network management system. The one or more APO modules belong to one or more pre-divided APO links. Each APO module in the one or more APO modules belongs to only one APO link. Each APO module in one APO link is in one to one correspondence with every two adjacent stations in the APO link, and the APO module is configured to, when the APO link to which the APO module belongs is triggered to perform power regulation, regulate a power attenuation or a gain between the two adjacent stations corresponding to the APO module and report a regulation result. The network management system is configured to, when learning that all of one or more APO modules in one APO link are successful in regulation, if there is a next APO link of the APO link, trigger the next APO link of the APO link to perform power regulation.