With the continuous access of distributed generations (DGs) to the distribution network, the problem of loss of selectivity and sensitivity of protection is becoming more and more prominent. Distance protection has the advantages of fast response, not affected by system operation mode, not dependent on communication, etc., which is an effective way to solve the protection problems of distribution network with DGs. However, the short-circuit current of DG has controlled characteristics and generates additional impedance, which makes it difficult for distance protection to meet the requirements of sensitivity and reliability in the distribution network with DGs. To this end, the fault characteristics of distribution network with DGs are analyzed, and the coupling relationship among the measured impedance, fault location, and additional impedance is analyzed; the expression of additional impedance during two-phase fault in distribution network with DGs is deduced, and the principle of locating two-phase fault in distribution network with DGs is put forward; and a new distance protection criterion is constructed, and an adaptive distance protection method is put forward for the two-phase fault in distribution network with DGs. Cases demonstrate that the method can accurately identify and locate the two-phase fault in feeder under different fault locations and fault severities, and has the advantages of simple principle, convenient realization, and wide application range.