The invention provides an improved system and a method for transformer and reactor noise source positioning and vibration detection. The system comprises a microphone support, a noise sensor array, a vibration sensor, a data acquisition system, a microphone array imaging module, a noise vibration testing module, and auxiliary equipment, the noise sensor array is formed by a plurality of microphones fixedly arranged on a microphone array support, the microphones are respectively arranged on a quartered square-shaped support and support rods led out from the left, right, and upper parts of the quartered square-shaped support, and the center of the quartered square-shaped array is provided with a camera for shooting photos of a detected object. The method includes steps: system building and connection; test system self-check; array position selection; array calibration; sound source positioning imaging; vibration measurement; and array dismounting. According to the system and the method, the quartered square-shaped microphone array is employed so that the precision of sound source positioning of the system for low-frequency-band noise signals is improved, vibration monitoring is additionally provided so that synchronous measurement of vibration signals and the noise signals is realized, and the positioning precision of the low-frequency-band noise sources of the transformer and the reactor is improved.