The invention belongs to the electric power system automation technical field and relates to a DM5000E-based smart substation busbar protection test method. The method is characterized in that SVs and GOOSEs are configured through utilizing a DM5000E, and one optical port is adopted to output one or more groups of sampling value messages, and another optical port is used for receiving GOOSE messages emitted by a protection device, and therefore, closed-loop testing of 220 kV busbar protection can be realized. According to the method, SCD files of a whole substation are led into the DM5000E handheld relay protection instrument; the transformation ratios of a CT and a PT in the protection device are identical with corresponding parameter settings in the DM5000E; and after the SVs and GOOSEs of all branches are configured, function and logic tests of the 220kV busbar protection device can be completed sequentially without replacing optical fibers required. With the method adopted, wiring is simple, and wire replacement is not required, and optical port information of the SVs and GOOSEs of different branches are not needed to be inquired. The method is not limited by the optical ports; and test items can be completed through modifying configurations, and therefore, work efficiency can be improved, and a testing process can be simplified.