Abstract: Distributed energy systems improve energy efficiency through local access and utilization of diversified energy sources, but their stability is limited. Vanadium flow batteries have become an important research direction in energy storage technology due to their long lifespan and efficient regulation capabilities. This article studies the energy storage working principle of vanadium flow batteries in distributed energy systems, focusing on analyzing their basic structure, working principle, and applications in load tracking, energy distribution, electrolyte adaptive circulation, and microgrid stability control. The optimization effect is verified through experimental design and result analysis, providing theoretical support for improving the stability of distributed energy systems.