To support a reliable transmission in higher rate optical transmission networks this paper suggests an efficient method of test management in the transmission system or network. This test management function supports the synchronous transmission network on the basis of the fault cause and the position detection, and the exact performance information of the transmission path to be based on the path pursuit, it will enhance the effective fault localization, recovery and the survivability of the transmission network. It test signals by generating Pseudo Random Binary Signals, transmitting, receiving and automatically detecting the discontinuity and degradation of the signal via multiplexing, add/drop, and cross-connection functional modules of the equipment between the end-o-end points in the transmission network. These test methods localize faults in the equipment, connections which have not been completed, or misconnections of the paths. Also, this paper suggests an efficient fault location detecting methods by using supervisory channel in optical transmission line like WDM.