The invention discloses a landslide monitoring system and a monitoring method thereof. The landslide monitoring system adopts a displacement monitoring method to monitor landslide displacement, meanwhile is provided with a conventional linear displacement sensor for monitoring large linear displacement and a micro-metering linear displacement sensor for monitoring linear micro-displacement, ensures high monitoring accuracy while obtaining efficient monitoring response, controls working states of two displacement sensors through a control device, can be adjusted to adopt different monitoring modes so as to adapt to different monitoring environments and ensure monitoring in the most appropriate mode and ensures efficient, rapid and accurate monitoring. According to the corresponding monitoring method, an environment device is utilized to monitor the surrounding annular situation in real time, and reflection on different environments is timely made for reference analysis of the control device, conduction of targeted operation control and ensuring of the timely and appropriate monitoring mode.