The invention discloses a pilot protection method for a distribution network with a distributed power supply. The method comprises the following steps of: firstly, respectively calculating voltages V<.> and V<.> at a point of common coupling point PCC in failure from the points M, N by relay protection devices at the front end and the tail end of a feeder line; and then calculating deltaV=| V<.>- V<.>|and finally deciding whether deltaV is greater than a set value deltaVset; if the deltaV is greater than the set value deltaVset, carrying out protection actions; otherwise, calculating the voltages and current directions at the points M, N respectively; and if criteria for deciding the directions are met, carrying out the protection actions; otherwise, failing to carry out the protection actions, wherein the protection devices can complete the calculation of the PCC voltage and the calculation of a PCC voltage difference by detecting the on-site voltage and current information on the premise that the voltage and current information of ''T''-connection branches are not needed to obtain, thereby realizing fault diagnosis. According to the method, the protection problem when the existing distributed power supply ''T'' is connected with the feeder line is solved effectively; and meanwhile, the method has relatively high reliability as well as strong practicability in engineering practices.