The invention discloses a method for distinguishing and prompting vehicle failures on the basis of image identification. A mobile intelligent terminal is adopted to take pictures for prompt code images of vehicle failures prompted by a vehicle OBD system, image features are extracted through image processing and image identification, and the corresponding pages of a corresponding vehicle handbook and expert processing suggestions are displayed at the mobile intelligent terminal after the image features are compared with and inquired from a failure symbol database in a remote server. The invention further discloses a system suitable for the method. The method and system for distinguishing and prompting the vehicle failures on the basis of the image identification can greatly reduce the possibility of personal and property safety losses brought due to the fact that a vehicle owner is unfamiliar with meanings of vehicle failure codes.