Disclosed are a defect monitoring apparatus and detection method for a transformer oil conservator based on edge computing. The monitoring apparatus includes: a sensing terminal, an edge intelligent gateway, a monitoring terminal, an oil conservator defect monitoring cloud platform, and a client terminal. The edge intelligent gateway and the monitoring terminal are both disposed in a substation. The monitoring terminal is configured to access the edge intelligent gateway. The sensing terminal includes: an airflow sensor, an oil temperature sensor, an ambient temperature sensor, and a microwave oil level measurement assembly. The sensing terminal sends detection data information to the edge intelligent gateway, and the edge intelligent gateway stores and determines a category of the detection data information. The present disclosure can recognize capsule damage, partial blockage of a breathing circuit, leakage in the breathing circuit, moisture impurities in a breathing tube, and false oil level.