Provided in the invention is a power distribution terminal location selection method. The method comprises: step A, analyzing the operating state of a single power distribution terminal and calculating the stationary probability of the power distribution terminal in each operation state based on the Markov chain theory; step B, carrying out communication reliability calculation on different communication networking modes of a power distribution network; step C, for different power supply areas, establishing a dynamic power distribution terminal location selection model by using a maximum construction cost input and communication reliability as constraints and minimization of the sum of the power outage loss cost and construction cost under the condition of different distribution network construction as an optimization objective and determining number of configuration of different types of power distribution terminals; and step D, carrying out node importance ranking on the power supplyareas and thus determining installation locations of the power distribution terminals in all power supply areas. According to the invention, the dual constraints of investment cost and power supply reliability are considered comprehensively based on the communication reliability in different networking modes; the random topological power distribution terminal planning layouts are completed by combining the node importance ranks; and the field practicability is high.