In the last decade, with increasing power supply from distributed generation (DG) to the distribution system, the traditional passive radial distribution systems transformed into an active multisource system. The nature of fault location schemes designed for the distribution system has traditionally been based on unidirectional power flow assumptions, making them ineffective for a distribution system with a higher level of DG penetration. New grid regulations require DGs to remain connected to the system in the event of a fault to provide support to the grid and improve system reliability. This makes the fault location process important as the timely location of a fault speeds up the restoration process, which improves the system reliability. Herein, providing a comprehensive review of the available techniques for fault location in the distribution system with DG penetration is focused on. An analysis is given on the shortcomings of traditional protection methods when applied to DG‐integrated distribution systems. A comparative analysis is carried out in which the merit and demerit of each technique is assessed. A discussion on some other important technical issues arising due to DG integration, such as effects on the stability of the distribution system, is also given.