The invention relates to a GOOSE communication simulation and fault diagnosis method for a station level of an intelligent substation. The method is characterized by comprising the following steps of (1) SCL file analysis, wherein an SCL model configuration file of an automatic system of the substation is read in through a standard XML analyzer, and an intelligent electronic equipment list including GOOSE configuration is analyzed; (2) communication simulation initialization configuration, wherein in the initialization configuration process, GOOSE communication parameters are automatically loaded in a simulation carrier, and simulation information list is automatically built by the simulation carrier according to the XML data nest relation. A GOOSE simulation mechanism is constructed through XML langue analysis, online simulation of GOOSE communication behaviors of the automatic system of the substation is achieved, and a visual and reliable simulation method is provided for an intelligent power grid simulation laboratory.