This invention relates to a distributed disturbance sensing device based on polarization sensitive optical frequency domain reflectometry (OFDR) and the related demodulation thereof. The device, adopting OFDR, polarization controlling and analysis techniques, consists of a ultra-narrow linewidth tunable laser source module, polarization generating and polarization splitting balanced detecting module, laser source optical frequency and phase monitoring module, high-speed optical switch and so on to establish a large-scale and long-distance optical sensing network. The demodulation method consists of analysis the polarization information from sensing optical fiber, the method of suppressing and compensating of the non-linear optical frequency and the laser phase noise, super-resolution analyzing, advanced denoising method and the polarization information analysis method based on Jones and Mueller's matrices using distributed wave plate model of optical fiber.