A novel multi-channel distributed optical fiber intrusion monitoring system with smart fiber link backup and on-line fault diagnosis functions was proposed. A 1×N optical switch was intelligently controlled by a peripheral interface controller (PIC) to expand the fiber link from one channel to several ones to lower the cost of the long or ultra-long distance intrusion monitoring system and also to strengthen the intelligent monitoring link backup function. At the same time, a sliding window auto-correlation method was presented to identify and locate the broken or fault point of the cable. The experimental results showed that the proposed multi-channel system performed well especially whenever any a broken cable was detected. It could locate the broken or fault point by itself accurately and switch to its backup sensing link immediately to ensure the security system to operate stably without a minute idling. And it was successfully applied in a field test for security monitoring of the 220-km-length national borderline in China.