A large number of distributed generation (DG) are connected to the distribution network, which is not only conducive to energy conservation and emission reduction and optimization of energy allocation, but also conducive to the rapid recovery of power supply in non-fault blackout areas after permanent failure of the distribution network. Under the premise of island division based on niche genetic algorithm (NGA), a fault recovery and reconstruction strategy of distribution network considering the results of island division is proposed. In the phase of fault recovery and reconstruction, the influence of island effect on reconstruction results is fully considered. A mathematical model based on the combined minimum of total power load loss, network loss and switching time is established, and the genetic algorithm is used to solve the model. Taking PG&E 69 node distribution system as an example, the simulation results verify the accuracy and practicability of the fault recovery and reconstruction method proposed in this paper.