This paper discussed the importance of the delayed neutron detection system. We improved the delayed neutron detection station and delayed neutron detector, so the noise was greatly decreased and the detection efficiency was greatly increased. After the improvement the stability of the detector was enhanced and the false alarm was eliminated. We introduced the principle of the gas lift pump designed for the sodium cooled fast reactor. A calculation model of the failed fuel detection system of CEFR was proposed, and from the model a code using LabWindows/CVI was developed. The minimum broken area that could be detected by the delayed neutron detection system of CEFR was calculated and the delayed neutron detection signal in a few representative transient conditions during fuel failure happened was stimulated.