The invention discloses a fault handling method of multi-mode intelligent distributed terminals based on Internet of Things. The method comprises the steps that distributed FA topology is established;after a power distribution line has a fault, power distribution terminals perform information interaction through a peer-to-peer communication mode by the adoption of the Internet-of-Things technology, information collected by the adjacent power distribution terminals is collected, a fault occurring segment is determined after comprehensive comparison, breakers or load switches at the two ends ofthe fault segment are tripped off, and a fault region isolation action is completed; and a substation exit switch and an interconnection switch coincide, non-fault region power supply is recovered, and then the result is reported to a power distribution master station. According to the method, by the adoption of the Internet-of-Things communication technology, power distribution automation distributed fault handling is realized in an old city where optical fibers are difficult to lay or a place where old line reforming is difficult to implement, and a solid technical foundation is laid for large-scale application of distribution automation and especially application of power distribution automation distributed fault handling under various occasions.