The invention discloses a medium-low voltage switch cabinet arc protection system and method. The method comprises the following steps: a spacer comprehensive protection device collects switch cabinetbus area and spacer arc signal for data processing; an arc GOOSE signal is sent to the arc main control unit through the process layer GOOSE network; the arc main control unit combines the auxiliarycurrent criterion to make logical judgment and issues the GOOSE tripping command; after receiving the GOOSE trip command of the master control unit, the spacer comprehensive protection device performsthe switch tripping out of the incoming line, segmentation or each interval. The method can realize the arc protection of the bus bar area and the interval area, and can also realize the dead zone protection of the arc fault between the circuit breaker of the switch cabinet and the CT. The GOOSE network achieve the arc signal transmission and tripping function, can effectively reduce the arc transmission fiber and cable laying. Therefore, this method is beneficial to engineering popularization.