The collected training data often include both normal and faulty samples for complex chemical processes. However, some monitoring methods, such as partial least squares (PLS), principal component analysis (PCA), independent component analysis (ICA) and Fisher discriminant analysis (FDA), require fault-free data to build the normal operation model. These techniques are applicable after the preliminary step of data clustering is applied. We here propose a novel hyperplane distance neighbor clustering (HDNC) based on the local discriminant analysis (LDA) for chemical process monitoring. First, faulty samples are separated from normal ones using the HDNC method. Then, the optimal subspace for fault detection and classification can be obtained using the LDA approach. The proposed method takes the multimodality within the faulty data into account, and thus improves the capability of process monitoring significantly. The HDNC-LDA monitoring approach is applied to two simulation processes and then compared with the conventional FDA based on the K-nearest neighbor (KNN-FDA) method. The results obtained in two different scenarios demonstrate the superiority of the HDNC-LDA approach in terms of fault detection and classification accuracy.