The invention discloses a GOOSE-based distributed grounding wire selecting method. The method comprises steps of step 1, calculating grounding fault characteristic quantity of the circuit; step 2, carrying out zero-sequence CT monitoring and polarity automatic correction; step 3, sending a grounding fault characteristic quantity GOOSE signal to a communication network; and step 4, receiving the grounding fault characteristic quantity GOOSE signals of other circuits and comprehensively comparing wire selection. The invention also discloses a GOOSE-based distributed grounding wire selecting system. According to the invention, polarity of zero sequence CT can be automatically corrected; compared with the phase-type wire selection, the accuracy of criteria is improved; monitoring can be performed on the zero sequence PT and zero sequence CT; effects on wire selection accuracy caused by wire damage are reduced; and there is no need to add a grounding wire selecting device, a cable connection wire and a communication network connection wire.