In order to deal with and locate the pipeline leakage in time and solve the problem of misreporting and omission rate and inaccurate positioning of the current pipeline leakage monitoring system, a leak monitoring and positioning method combined with negative pressure wave and flow balance method is proposed, and a combination of LabVIEW and MATLAB is used to develop the real-time pipeline leakage monitoring and location software. Firstly, the software controls the NI demodulator SM130 and the electromagnetic flowmeter, realizes the synchronous acquisition of fiber Bragg grating sensor signals and electromagnetic flowmeter signals, which can monitor the pipe pressure and flow state parameters timely. Leak warning is provided when sensor detects negative pressure wave signal and the flow difference between upstream and downstream exceeds the threshold value. Finally, it calls the positioning method written by MATLAB to locate the leakage and connect with MySQL database for data management. The test proves that the system can accurately identify the real leakage and maintain good monitoring reliability for the function of leak warning. For the leak locating test, the averaging method of multi-group locating based on sensor array is put forward, and the accuracy and stability of locating are verified in repeated tests. Its advantages of good interactive performance and strong scalability are in line with the development process of future pipeline automation management and have important engineering practical value.