The invention discloses a method for planning a distribution network based on full life cycle cost management. The method comprises the process that a calculation model for the full life cycle cost of a distribution network planning scheme is provided under the premise of meeting safe and stable running of a power grid, distribution network path planning is optimized by using a clustering crowding niche genetic algorithm by taking the minimum full life cycle cost as an objective function, a distribution planning scheme with the minimum full life cycle is acquired through performing comparative analysis on the full life cycle cost of different switch arrangement patterns, and finally the feasibility and effectiveness of the method are proven through calculating examples. The method provides a new analysis method and an assistant decision-making theory basis for distribution network planning, running and transformation and operation benefits of electric power companies, power grid formulation technologies are optimized, and a planning scheme with the optimal economical efficiency is acquired.