This paper studies islanding detection of DG(distributed generation) considering fault location. Through the past studies, we found that islanding detection has been studied that DG disconnected when power islanding was detected by power state change and output change of DG. But, fault location was not considered. For example, fault in adjacent distribution line, fault on interconnection line fault, load shave by overload and normal operation were not considered. In this paper, We distinguish these considerations through power state change. Also, we proved islanding detection algorithm through PSCAD/EMTDC simulation.