In a method and a corresponding apparatus for performing chaotic optical time domain reflectometer, the chaotic laser signal, generated by the chaotic laser transmitter, is split into probe signal I and reference signal II by a fiber coupler. Through an optical circulator, the probe signal I is launched into the test fiber and the echo light is converted into electrical signal by a photodetector and digitalized by an A/D converter. The reference signal II is converted into electrical signal by a photodetector and digitalized by another A/D converter. Two digital signals received from two A/D converters are correlated in a signal processing device to locate the exact position of faults in fibers. The result output is then displayed on a display device. This invention was developed to overcome the tradeoff problem between resolution and dynamic range of the pulse-based OTDR.