The invention relates to the field of optical fiber sensing, specifically a phase-light time domain reflection device and method based on heterodyne detection phase demodulation. The device consists of a narrow linewidth laser, an optical fiber coupler with a coupling model of 1*2, a polarization controller, a sound-light modulator, an erbium-doped optical fiber amplifier, a narrow-band optical fiber filter, a first variable optical attenuator, a three-port circulator, a sensing optical fiber, an optical fiber coupler with a coupling model of 2*1, a photoelectric detector, a signal collection and processing module, an arbitrary waveform generator, a power amplifier, and a second variable optical attenuator. The device and method enable the heterodyne detection phase demodulation to be combined together, achieve external vibration sensing through direct phase demodulation, and are higher in sensitivity. In addition, the device and method employ a brand new direct phase modulation method to sense the external vibration, so the positioning method, compared with a conventional method, of each vibrating point is different.