Disclosed herein is a system and method for managing a power distribution system in which has an improved system protection and fault section determination structure in consideration of distributed power supplies, has an improved server and communication structure for one-to-one synchronization measurement, and conducts real time system management and control. The system for managing the power distribution system uses field measurement data and an event signal to detect a protection coordination correction value of a protective device for protection of the system and a fault section of the power distribution system, performs real time system analysis using the field measurement data, and transmits control information including at least one of the protection coordination correction value, the fault section and the system analysis information to a DCP server.