Fault diagnosis of downhole traction robot has characteristics of special mechanical structure, complicated working condition and lack of research data. In this paper, a method of fault analysis and diagnosis of tractor hydraulic system based on model is presented. The failure mode and mechanism of key components in telescopic hydraulic system are analyzed. The fault diagnosis of hydraulic system is proposed based on the mathematical model of hydraulic component. Based on AMESim, the fault model of hydraulic system is established, and the diagnosis of single fault and multi-fault are simulated, which can collect the fault data and the specific diagnosis process. To carry forward the engineering application, the simulated internal leakage system in cylinder is set up and schemes of fault diagnosis are carried out, which prove that the diagnosis is consistent with theoretical analysis and simulation. The research on fault analysis and diagnosis of the downhole traction robot hydraulic system not only lays theoretical basis for the tractor fault detection, but also provides guidance for the construction and implementation of the diagnostic system.