The identify and locate of optical network faults are very important, some existing fault location algorithm is lack of applicability and low locating rate in the interference alarm information. According to this, this paper proposed the corresponding fault location mechanism on the basis of the shortest length m circle algorithm. The fault location mechanism is divided into two steps, the first step: collect alarm information by fault triggered, and compose corresponding binary alarm correlation matrix; The second step: adopt pre-computation way, locate faults through the alarm matrix, which can in the case of both avoiding leakage alarm and false alarm, solve the problem of multiple faults location, find the possible fault equipment sets, finally realize the effective positioning.