The invention relates to a transmitter fault diagnosis circuit and a method thereof. The fault diagnosis circuit comprises a sensor, a signal processing module, a standard signal input module, and a change over switch. The change over switch connects with the sensor and the signal processing module, and connects with the standard signal input module and the signal processing module simultaneously. According to the invention, a standard signal is inputted to the signal processing module through the standard signal input module, and connection between the sensor and the signal processing module or connection between the standard signal input unit and the signal processing module is switched through the change over switch. When a fault appears, the change over switch disconnects the connection between the sensor and the signal processing module, and connects the standard signal input module with the signal processing module, the standard signal is inputted to the signal processing module through the standard signal input module, according to the standard signal, the signal processing module carries out processing, followed by outputting, if an output result is normal, the sensor has a fault. Conversely, the signal processing module has a fault. The transmitter fault diagnosis circuit has the characteristics of simple structure, low cost and convenient maintenance.