Polarization diversity reception is a widely used method to suppress polarization fading of Φ-optical time domain reflectometer (Φ-OTDR). However, the traditional polarization diversity reception method with multichannel point-to-point signal aggregation causes the discontinuity of the aggregated signal, which affects the subsequent application. In order to decrease the discontinuity of the aggregation signal, an area-to-area signal aggregation method with a Rayleigh gray-scale pattern is proposed. First, the Rayleigh pattern is simulated to verify the large-scale continuity of fading areas. Then, an image-processing method by Rayleigh gray-scale pattern is carried out for the automatic judgment of large-scale fading areas, which includes the operations of normalization, graying, comparison of amplitude threshold using the Otsu algorithm, erosion, and dilation. The experimental results indicate that multichannel area-to-area signal aggregation can reduce the average fading ratio from 6.58% to 2.10% and also realize the signal demodulation with an SNR of 15.83 dB of positioning curve. This aggregation method provides an effective scheme for the polarization-fading suppression for Φ-OTDR.