Abstract: As an important component of power supply, the safe operation of the distribution network is crucial to ensuring the stability of power supply. Through the screening of external damage risks, potential risk issues can be dealt with and identified in a timely manner, thereby ensuring the operational stability of the power grid. To achieve the above goals, this study proposes a method for identifying and locating the external damage risk of distribution networks based on multi-source data fusion algorithms. By using the multi-source data fusion algorithm model, the risk of external damage is quantified. Then, while defining the level of external force damage, the positioning process is improved to complete the design of the identification and positioning method of the risk of external damage in the distribution network based on the multi-source data fusion algorithm. The experimental results show that the application of the above method can accurately identify the fault voltage of the distribution network in the case of external damage risk, and the positioning deviation of the risky lines is relatively small, which is helpful to ensure the operational stability of the distribution network.