Significant water loss caused by pipeline leaks emphasizes the importance of effective pipeline leak detection and localization techniques to minimize water wastage. All of the state-of-the-art approaches use deep learning (DL) for leak detection and cross-correlation for leak localization. The existing methods’ complexity is very high, as they detect and localize the leak using two different architectures. This paper aims to present an independent architecture with a single sensor for detecting and localizing leaks with enhanced performance. The proposed approach combines a novel EMD with an optimal mode selector, an MFCC, and a two-dimensional convolutional neural network (2DCNN). The suggested technique uses acousto-optic sensor data from a real-time water pipeline setup in UTAR, Malaysia. The collected data are noisy, redundant, and a one-dimensional time series. So, the data must be denoised and prepared before being fed to the 2DCNN for detection and localization. The proposed novel EMD with an optimal mode selector denoises the one-dimensional time series data and identifies the desired IMF. The desired IMF is passed to the MFCC and then to 2DCNN to detect and localize the leak. The assessment criteria employed in this study are prediction accuracy, precision, recall, F-score, and R-squared. The existing MFCC helps validate the proposed method’s leak detection-only credibility. This paper also implements EMD variants to show the novel EMD’s importance with the optimal mode selector algorithm. The reliability of the proposed novel EMD with an optimal mode selector, an MFCC, and a 2DCNN is cross-verified with cross-correlation. The findings demonstrate that the novel EMD with an optimal mode selector, an MFCC, and a 2DCNN surpasses the alternative leak detection-only methods and leak detection and localization methods. The proposed leak detection method gives 99.99% accuracy across all the metrics. The proposed leak detection and localization method’s prediction accuracy is 99.54%, precision is 98.92%, recall is 98.86%, F-score is 98.89%, and R-square is 99.09%.