As the actual distribution network with tree structure has many branches， it is very difficult to find the fault point using the fault location method based on the single-terminal or double-terminal traveling wave. For the type B traveling wave and the tree structure of the distribution network， a fault location method based on multi-terminal traveling wave is put forward. This method carries out fault location by using the time that the first traveling wave head generated during grounding fault takes to reach the ends of the power lines. According to the theory of fault location method based on multi-terminal traveling wave， the theoretical basis is established and the superiority of the location scheme in the distribution network is examined. The various factors in the distribution network scheme are analyzed by ATP simulation software and MATLAB software. The simulation results show that in distribution network phase-to-ground fault location， the location method based on multi-terminal traveling wave only uses the initial transient traveling wave signal within a very short time， while the fault development in the later stage of the grounding fault has no influence on the initial transient traveling signal. So the fault point can be quickly and accurately found by using multi-terminal traveling wave method.