The invention discloses a cutting chatter online monitoring method and a monitoring system. The monitoring method comprises the following steps: a, reading sensor data, computing a main axis passing rate fs=m/60; b, if the sensor data size is greater than or equal to N, performing Fourier transform and cleaning data, and returning to step a if the data size is less than N; c, when the chatter occurs, enabling the vibration energy to deviated from the integer multiple frequency of the main axis passing rate fs; d, computing a formula as shown in description; e, comparing the f0 with f; f, whenthe f0 is less than f, returning to step b, and ending; g, when the f0 is not less than f, sending a PLC signal to control a machine tool to halt; and h, ending. The monitoring system comprises the vibration sensor, a vibration signal collection card, a computer, an industrial bus interface and a numerical control system PLC. The Fourier transform is performed on a vibration signal so as to transform the vibration signal to a frequency domain, whether the chatter occurs is judged according to the deviation degree between the frequency located by the main vibration energy and the integral multiple frequency of the main axis passing rate, and the monitoring is performed at the same time.