In this publication we investigate distributed mode-mode fiber interferometer (MFI) with ability of external impact localization. It is based on bidirectional continuous selective excitation of multimode fiber (MMF) with increasing of launched modes quantity along the MMF from excitation point to the opposite end of fiber. Two photo detection systems register output signals from both directions. MFI output signal characteristics such as amplitude and spectrum width depend on excited modes quantity at the point of perturbation. Thus, every fiber point is characterized by two opposite direction signal parameters. Calculating these parameters’ values makes it possible to localize the segment subjected by external impact. Experimental MFI setup include 3 MMF segments with 2 mode controllers among them which increase excited modes number from segment to segment. During the experiment, every MMF segment was subjected by arbitrary external perturbations and output signals were analyzed. Obtained results confirmed the ability of localization.