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Network fault identification is an important network management function, which is closely related to fault management and has an impact on other network management functions such as configuration management, and performance management. This paper investigates fault surveillance and fault identification mechanisms for a transparent optical network in which data travels optically from the source node to the destination node without going through any optical-to-electrical (O/E) or electrical-to-optical (E/O) conversion. Mechanisms and algorithms are proposed to detect and isolate faults such as fiber cuts, laser, receiver, or router failures. These mechanisms allow nonintrusive device monitoring without requiring any prior knowledge of the actual protocols being used in the data transmission.