Power system protection is a major and essential element in exploiting the power system. Generally, two approaches for security system can be represented, which are identification and separation of the fault from the system and the fault location in order to solve the problem. The distribution system as a subset of power system requires protection measures. Today, with the expanding utilization of the distributed generation in the distribution system, its structure has been changed. The existence of distributed generation, which is called DGs, poses a major challenge to the protection coordination system and fault location in the distribution system. In this paper, a new method was provided for fault location in the distribution system with the distributed generation. The proposed method used the data obtained from the phasor measurement units, which were installed in the distributed generation terminal, to determine the fault location rate and then determine the exact fault location using substitution theorem. The suggested method was tested on a distribution system sample; the simulation results of which indicated its proper functioning. In order to simulate the understudied system, digsilent, a powerful software, was used and the fault location program was written in the form of MATLAB software.