The invention provides an arc suppression coil and parallel low resistance power distribution network ground fault processing method and aims at solving the problems that frequently switching a parallel low resistor is likely to cause overcurrent impact, insufficient parallel low resistor heat capacity and the like. The fault processing method is disclosed to reduce the parallel low resistor switching times. The ground fault processing method disclosed by the scheme of the invention comprises the steps: after a fault happens, an arc suppression coil is utilized at first to suppress arc; then the self electric quantity of the fault is comprehensively utilized to achieve grounding line selection and fault point transition resistance estimation; reliability estimation is performed on a line selection result according to a related algorithm; only when transition resistance is lower than a set standard and the line selection result is incredible, is the parallel low resistor switched to perform secondary protection. The method disclosed by the invention can effectively reduce switching times of the neutral point parallel low resistor, so that heat capacity and construction, operation and maintenance cost of the parallel low resistor are saved, and capability of a system to process the high resistance ground fault is improved.