The invention discloses an adaptive transient characteristic fault line detection algorithm for a non-effectively earthed system by utilizing wavelet packet frequency division characteristics. The method comprises the following steps of: (1) monitoring a waveform of a bus zero sequence voltage, and when an instantaneous value of the bus zero sequence voltage exceeds a setting value, starting a fault line detection device and recording, and acquiring transient zero sequence current of each line; (2) calculating the selected frequency band of the system according to the grid structure and line parameters of a power distribution network; (3) decomposing and reconstructing the zero sequence current of the line by employing a wavelet packet, and taking three lines with the highest zero sequence current envelope line area as alternative fault lines; (4) calculating a scaling factor r and a transient factor h, and judging the earthing fault generation type; and (5) calculating a first amplitude value comparison criterion and a second polarity comparison criterion according to the earthing fault type, introducing a third criterion when the two criterion results are inconsistent, and selecting the earthing line. The method is accurate in line selection, and the earth line selection reliability of the power distribution network can be improved.