First， the principle of traditional industrial frequency variation distance protection is introduced and its deficiencies are pointed out. Based on the previous analysis， a new scheme of industrial frequency variation distance protection is put forward. A more accurate distributed parameter model is used in new algorithm to calculate the fault component of compensation voltage. Comparing with traditional algorithm， it makes the new algorithm less influenced by system source impedance and load， so that it also greatly improves the protection sensitivity. The spectral characteristics of the aperiodic components are analyzed in detail， and adaptation of the new algorithm to aperiodic components is proved as well. Simulation results with EMTP verify its validity and utility.