The invention discloses an overhead line intelligent fault positioning processing system and a method thereof. The system mainly comprises a fault indicator, a gatherer, a voltage transformer and a monitoring management platform. An ad-hoc network is formed through the monitoring management platform, the gatherer, the voltage transformer and the fault indicator for data communication and transmission. Through a wireless ad-hoc networking technology, the use of a wireless network of a service provider is unnecessary, and restrictions of a service provider network are eliminated, such that the operation cost is saved, and data security is ensured; at the same time, faults such as single-phase grounding and the like are determined through combination with an expert analysis unit, system functions are enriched, and the accuracy in determining a single-phase grounding fault is substantially improved; and besides, the fault indicator as a major part employs an induction power-drawing technology, the problem of depletion of electric energy does not have to be considered, installation is finished in one step, replacement is unnecessary, the practicality is enhanced, at the same time, since an energy consumption problem is solved, the system provided by the invention can fully exhibit more effects, and the functions are increased.