Intelligent distribution equipment is inevitable to realize self-healing which is one of smart grid functions in distribution network. Therefore, most of distribution equipment have been developed with self diagnostic sensors. However, it is not effective to construct on-line monitoring system for underground distribution cable because of high cost and low sensitivity. Recently, optical fiber composite cable is being considered for communication and power delivery in order to cope with increasing communication in distribution network. This paper presents the design and performance assessment results of underground cable on-line monitoring system using DTS(Distributed Temperature Sensing) and optical fiber composite underground cable.