The invention provides a functional meter capable of locating a fault point and a locating method of the functional meter. With the functional meter and the locating method thereof adopted, the fault point can be located fast, power supply recovery time can be greatly decreased, economic losses of power supply departments and users can be reduced, and power supply reliability can be improved. The functional meter includes three voltage transformers, three relays I, a switching power source, a voltage detection unit, three current transformers, three relays II, three green lamp indication circuits, a current detection unit, three self-providing power sources, three relays III, a power multiplication unit, a control unit, a self-providing power source discharge monitoring unit, a memory I, a display unit I, a wireless transmission control module, a wireless receiving control module, a processing unit, a memory II and a power grid circuit geographic map electronic simulation board; an overcurrent switch and a zero-current action switch are connected in series so as to form each relay II; the relays II are corresponding to various kinds of line fracture and short-circuiting faults respectively; and the self-providing power sources are connected with red and green light indication units through the relays III, so that a discharge loop can be formed.