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In consideration of the new features of Optical Transport Networks (OTN), the failure detection and localization has become a new challenging issue in OTN management research area. This paper proposes a scheme to detect and locate the failures based on the optical power analysis. In failure detection section of the scheme, this paper propose a method to detect the performance degradation caused by possible failures based on real optical power analysis and build a status matrix which demonstrates the current optical power deviation of the fiber port of each node in OTN. In failure localization section of the scheme, this paper proposes the multiple failures location algorithm (MFLA), which deals with both single point failure and multi-point failures, to locate the multiple failures based on analyzing the status matrix and the switching relationship matrix. Then, an exemplary scenario is given to present the result of detecting and locating the fiber link failure and OXC device failure with the proposed scheme.