The massive application of distributed generation (DG) has brought forward higher requirements for grid fault identification and location. Although the insulation is not damaged during a break fault in the distribution network, it may lead to DG fault ride-through and even induce grid-connected inverter blocking, causing an electrical quantity exceeding the limit, and thereby threatening the stable operation of the power grid. Thus a method is proposed to locate the compound break fault with grounding in a distribution network with DG using the positive sequence voltage difference. By analyzing the sequence currents and voltages point of common coupling voltages of the distribution network under different fault conditions, it is found that the positive sequence voltage difference at both ends of the non-fault section is equal to the line voltage drop, while the positive sequence voltage difference at both ends of the break is constant positive and more than the difference of the non-fault section. Thus a fault location criterion based on the positive sequence voltage difference is constructed. For the possible dead zone problem of the location criterion, the DG output current is introduced as an auxiliary criterion to improve reliability. Finally, the method of fault location of a compound break fault with grounding is proposed. The theoretical analysis and simulation results show that the proposed method can accurately locate the compound break fault with grounding section with different DG capacity and fault location, and has strong resistance to transition resistance. This work is supported by the National Natural Science Foundation of China (No. 51877018).