The invention relates to a method for fault analysis of a power system, in particular to a method for fault analysis of a distributed type power source connected power distribution network. The method comprises the following steps that (1) data of the distributed type power source connected power distribution network are collected; (2) voltage, current and equivalent load resistance of each node of a power distribution network feeder line are determined; (3) fault analysis is respectively conducted on a rotary motor type distributed power source and an inverter type distributed power source; (4) the voltage and the current of each node of the power distribution network feeder line are determined; (5) whether a limit value is met or not is judged and if the limit value is met, the fault analysis process is finished; if the limit value is not met, an iteration value is selected to serve as a mean value of a calculation value and the limit value, and the step (4) is repeated. According to the method, fault transient characteristics and a control strategy of a typical distributed power source are combined, the requirements for connection of the power source to the power distribution network are considered, and therefore the accuracy of fault analysis is improved.