In order to solve the problem of fault treatment for two-phase grounded short-circuit，the phenomenon of two-phase grounded short-circuit is analyzed.A grounding fault location criterion based on the identification of the continuity of the over- current information of the individual grounded phase is proposed.It is pointed out that the over-current information on three phases should be individually sampled and reported to implement the location of the two-phase grounded short-circuit.On the basis of the principle of restoring the affected loads as much as possible，the approaches to achieving fault isolation and restoration steps are proposed for permissible and impermissible operation with a single phase grounded，respectively.Some examples are given to illustrate the proposed methodologies and the results show that the fault areas can be accurately located and isolated and the affected loads can be restored as much as possible.