The invention provides a fault processing method and device of distributed generation with different permeabilities. The method comprises the steps of: collecting the operation information of each power transmission line, a distributed generation and a load in real time, and calculating the permeability of the distributed generation; and controlling a fault processing strategy matched with the fault feature combination of the permeability range to process the generated fault when determining that the permeability of the distributed generation obtained by calculation is within a certain permeability range and the power distribution network has a fault. According to the invention, fault processing of the power distribution network master station system adaptive to different permeability of the distributed generation is achieved, the utilization rate of the distributed generation is improved, the fault analysis and processing time when the permeability of the distributed generation connected to the power distribution network changes is reduced, and the fault processing efficiency is improved.