The increase in the level of distribution network automation can limit the impact of DG on distribution network at the lowest level as long as its corresponding protection and operation scheduling strategy can adapt to the distribution network automation level when the DG is joined up. In this paper, on the basis of comprehensively considering DG capacity, namely, the characteristics of supporting the island operation mode and the characteristics in the steady and transient state, the corresponding fault isolation and its power network self-healing strategy are adopted to achieve this goal. Through the analysis of the normal operation flow of DG and the characteristics of the short circuit at fault time, the adjustment of protection setting value and the reclosing strategy are used; the cooperation of existing equipment distribution network automation system (including equipment automation and remote controllable switches) is also used to realize the fault elimination and the isolated island partition scheme. Through the case analysis, it can be seen that the distribution network running on the DG can also achieve the fault location and the distribution network self-recovery strategy.