The safe operation of insulators directly determines the safety level and reliability of the entire system. In this paper, digital image processing technology is used to analyze and process insulator images, and the performance of composite insulators is comprehensively evaluated from three aspects: degree of deterioration, surface pollution, and degree of water repellency, which is used as the basis for judging insulator detection. For this purpose, an insulator online monitoring system based on telemetry image analysis is specially designed to determine the degree of aging, surface pollution, and hydrophobicity of insulators and to conduct practical tests. At the same time, the system can realize the offline operation of the insulator live, avoid the danger of climbing and live trial operation, and ensure the personal safety of power maintenance personnel. The system hardware uses advanced integration technology and high-performance and reliable equipment. The software is developed using popular development tools, is simple to operate, and has important engineering value.