The invention discloses a distributed type grounding line selection system and method. The system comprises a grounding line selection device and zero sequence current acquisition devices corresponding to respective branch circuits, wherein the grounding line selection device is connected with each zero sequence current acquisition device through a ring network; the zero sequence current acquisition device in each branch circuit is used for acquiring the zero-sequence current sampling value and the switching value information of the branch circuit; the collected data are sent to the groundingline selection device through the ring network; and the grounding line selection function is completed through the grounding line selection device. According to the technical scheme, the problem thata current low-current grounding line selection device is complex in wiring can be solved, the current is collected in a communication mode, and the problem of high sampling rate transmission requiredby the grounding line selection device is solved through a new transmission mode.