A thermoelectric insulating medium fault simulation device comprises a sealed container, a self-heating electrode module, a high-voltage electrode, a high-voltage wall bushing, a low-voltage wall bushing, a sample inlet, a sampling port, a discharge detection device, a temperature controller, a heating power source, a plate penetrating flange, an electric heating rod, a pressure detector, a microwater detector, a discharge signal sensor, a first temperature sensor and a second temperature sensor. In operation, simulation of three types of thermoelectric complex faults can be realized throughthe temperature controller and includes simulation of thermoelectric complex faults with different thermoelectric positions, simulation of thermoelectric complex faults with same thermoelectric positions and simulation of thermoelectric complex faults under high-temperature and discharge complex action.