The conventional residual chi-square test can not accurately detemine the fault duration and thus is easy to cause false alarm and alarm leakage.Aimed at this problem, a fault detection and system reconstruction method based on hierarchical filtering is proposed.The residual chi-square test is used for fault detection of main and sub filters, and the specific failure satellite can be identified by comparing the detection results.Then, the filtering results of the sub filter uncontaining the failure satellite are feedback to the main filter and other filters and replace the results of them to reconstruct the system.The results show that: Under the condition of single satellite failure, the novel algorithm can reduce the fault tracing function, determine the failure satellite and fault duration more accurately, and improve the integrity monitoring performance significantly.