A method of detecting a thermal event is provided that relies not only on monitored exhaust temperatures, but also on temperature gradients propagating in the direction of exhaust flow. Specifically, the method of detecting a thermal event in a vehicle exhaust system includes monitoring at least one operating parameter at multiple locations spaced in exhaust flow of the vehicle exhaust system. The method then includes initiating a protective action if the monitoring indicates that at least one respective predetermined temperature requirement and a respective predetermined temperature gradient requirement are exceeded at two of the multiple temperature sensor locations within a predetermined time period.