In this study, a small leak detection method based on variational mode decomposition (VMD) and ambiguity correlation classification (ACC) is proposed. The signals acquired from sensors were decomposed using the VMD, and numerous components were obtained. According to the probability density function (PDF), an adaptive de-noising algorithm based on VMD is proposed for noise component processing and de-noised components reconstruction. Furthermore, the ambiguity function image was employed for analysis of the reconstructed signals. Based on the correlation coefficient, ACC is proposed to detect the small leak of pipeline. The analysis of pipeline leakage signals, using 1 mm and 2 mm leaks, has shown that proposed detection method can detect a small leak accurately and effectively. Moreover, the experimental results have shown that the proposed method achieved better performances than support vector machine (SVM) and back propagation neural network (BP) methods.