The invention discloses a series capacitor compensated line distance protection method based on fault point position identification, which is characterized by comprising the following steps: 1) voltage calculation, wherein calculating a faulty phase voltage Us in front of a capacitor on a series compensated capacitor installation position by utilizing current and voltage values on the protection installation position through an equation of a uniform transmission line; 2) fault point position identification, wherein comparing phase according to the calculated Us and a positive sequence voltage corresponding to the protection installation position, and judging positions of fault points relative to a compensated capacitor according to a phase-comparing result; and 3) protection logic, wherein directly opening distance protection and needing no excess preventing measures if judging the fault is in front of the capacitor, and switching to level detection logic if judging the fault is at the back of the capacitor. The method improves the sensitivity of the distance protection on the basis of reliably preventing excess; and when the compensated capacitor is arranged at the tail end of a transmission line, the sensitivity of the distance protection is not influenced by the compensated capacitor basically, so the method has high reliability and easy implementation.