The invention discloses a simulation system and method of a moving-die hybrid grounding mode of a configuration-type power distribution network. The simulation system comprises a first grounding transformer, a second grounding transformer, a resistor stepless-adjustable first small-resistance equivalent module, a second small-resistance equivalent module, an arc extinguishing coil compensation stepless-adjustable first equivalent arc elimination coil module, a second equivalent arc elimination coil module, a plurality of AC contactors and a plurality of AC mutual transformers. The simulation system is used for solving the problems that a grounding mode of a neutral point of a moving-die system of a current power distribution network is simple, an experiment scene of the hybrid grounding mode cannot be flexibly configured and a parameter of an arc extinguishing coil cannot be matched very well when system capacitance current changes, and wiring is not needed to be changed during experiment; dynamic simulation of the hybrid grounding mode of the power distribution network can be achieved by local liquid crystal panel operation or upper computer remote operation; and stepless adjustment of compensation degree of the arc extinguishing coil and grounding resistor of a small-resistance grounding system can be achieved within a certain range.