A new search way for fault location based on two-terminal is proposed in the paper. The two-terminal fault location method uses transform matrix between phase and modulus to decouple the asymmetric three phase line to absolute modulus, selects proper modulus absolute value to realize fault location. The practical algorithm uses Taylor series to approximate the hyperbolic function, simplifies wave impedance and propagation coefficients. When searching fault location, it first uses the intersect dot of two beeline to find the actual fault location. When the transmission line has shunt reactors, the current of fault measurement should get rid of the effect of shunt reactor’s current. The simulation of EMTP shows that the proposed method has high accuracy, less calculation burden, avoids pseudo-root, satisfies the practical fault locating need, and can afford the effect of transition resistor.