The invention relates to a line fault optimized positioning method based on measurement on distributed traveling waves. According to the method, fault points are accurately positioned according to different positioning methods on the basis of current traveling wave information collected by a plurality of monitoring terminals distributed on a power transmission line. The method mainly includes the following steps that firstly, the monitoring terminals are distributed at different monitoring points of the line to collect the current traveling wave information; then a fault section where the fault points are located is determined on the basis of the current traveling wave information collected by the different monitoring points; finally, the actual transmission speed of the traveling waves is corrected under the situation of taking sag into consideration, the fault points are accurately positioned according to the different traveling wave positioning methods, and a final optimized positioning result is obtained. Compared with a frequently-used traditional station type traveling wave positioning method, the method reduces influence on positioning accuracy from factors such as sag, wave speed and attenuation distortion of the traveling waves to a great extent, and also has a good application effect in actual projects.