The invention discloses a virtual imaging-based engine monitoring system. The system comprises a control platform, an automobile service terminal and a maintenance point terminal. The control platformcomprises a control module, a display module, a first communication module and a central database, wherein the display module, the first communication module and the central database are respectivelyconnected with the control module. The automobile service terminal comprises a scanning module, a second communication module, an imaging module, a positioning and navigation module and a display screen, wherein the scanning module, the second communication module, the imaging module, the positioning and navigation module and the display screen are respectively connected with a service terminal processor integrated with an automobile interaction module. The maintenance point terminal comprises a third communication module, a maintenance point terminal and a maintenance database, wherein the third communication module, the maintenance point terminal and the maintenance database are respectively connected with a maintenance point processor of an integrated maintenance point interaction module. The first communication module, the second communication module and the third communication module are in information interaction through a network. The invention further discloses a monitoring method based on the system. In this way, the real-time and remote visual accurate monitoring of an engine is realized. The help can be provided in time, and the accident rate can be reduced.