Based on the analysis of fault current characteristics of distribution network branch with DG, matrix algorithm for fault location is optimized. The branch contained with distributed generations is improved. To begin with, fault associated area is located by the initial mutations quantity from sum of positive-sequence component and negative-sequence component rms. What’s more, fault line is located by comparing both sides of the line current amplitude variation characteristics. Comprehensive amplitude is simplified, protection scheme is improved for distributed generations branch, and other branches remain unchanged in order to reduce equipment, keep cost saving, and locate fault line. The typical model is built on PSCAD/EMTDC platform for proving the protection algorithm in both symmetric and asymmetric fault. The simulation results of different fault type results show the effectiveness of this scheme.