An Acoustic Emission (AE) detection system based on a Fiber Bragg Grating(FBG) network was constructed and an AE location system by using Minimum Variance Distortionless Response (MVDR) algorithm was designed. In this system, linear FBG array constituted by seven FBGs was used to detect AE signals, and the edge filter technology using an unflatted Amplified Spontaneous Emission(ASE) source was applied to signal demodulation. Shannon wavelet transform was employed in extracting narrow signals of AE signals with complex frequency dispersion and the spatial spectrum could be obtained by canning over the monitoring area with the MVDR algorithm. The spatial spectrum function was used to calculate output values and the values were used as pixels. Finally, the AE source location was determined by the peak of spatial spectrum of MVDR. The system was verified on a LY12 aluminum alloy plate. The result shows that the maximum error and average error are 11.4 mm and 8.2 mm in a 400 mm ×400 mm monitoring area, respectively, and the average consumed time is less than 3 s. The system has higher real time ability and location accuracy, and is a new AE location technology.