A protection configuration strategy and fault location method of the demonstration project of flexible DC distribution system in Shenzhen is studied. Firstly, focusing on the topology structure of the project, the protection area of DC distribution network is divided. Secondly, an overall protection configuration strategy is presented considering MMC and the system’s faulty characteristics. Thirdly, as the new feature of the load and micro grid being connected with the DC line with “T” type, the protection configuration and fault location method of DC line single-pole fault, double-pole fault and broken line fault is proposed. Lastly, the simulation model of MMC based DC distribution grid is built on PSCAD/EMTDC, and the simulation results verify the effectiveness of the protection configuration strategy and the correctness of the fault location method.