The utility model discloses a distribution-network-area protection and self-healing system including a transformer substation and a spacer layer which is formed by combination of a plurality of UEs. Signals are transmitted through a communication channel and the UEs and a low-voltage-side busbar in the transformer substation are electrically connected through a power distribution line. A control sub-station, which is connected with a feeder protection device and a spare power automatic switching device through the communication channel, is arranged in the transformer substation. The feeder protection device outputs on-off signals to a medium voltage feeder switch in the transformer substation. All the UEs on the power-distribution line are connected with circuit breakers. Each circuit breaker is connected with a power-distribution terminal device. The power-distribution terminal devices are connected to the communication channel through terminal communication devices. The remote spare power automatic switching device is connected with the UEs and connected to the communication channel. The distribution-network-area protection and self-healing system isolates fault points in a distribution-network area and recovers power supply of non-fault-point areas rapidly so that large-range and long-time power-off is prevented, power is supplied to important loads of a distribution network stably and economic losses caused by the power-off are reduced.