Thanks to smart grids, more intelligent devices may now be integrated into the electric grid, which increases the robustness and resilience of the system. The integration of distributed energy resources is expected to require extensive use of communication systems as well as a variety of interconnected technologies for monitoring, protection, and control. The fault location and diagnosis are essential for the security and well-coordinated operation of these systems since there is also greater risk and different paths for a fault or contingency in the system. Considering smart distribution systems, microgrids, and smart automation substations, a full investigation of fault location in SGs over the distribution domain is still not enough, and this study proposes to analyze the fault location issues and common types of power failures in most of their physical components and communication infrastructure. In addition, we explore several fault location techniques in the smart grid’s distribution sector as well as fault location methods recommended to improve resilience, which will aid readers in choosing methods for their own research. Finally, conclusions are given after discussing the trends in fault location and detection techniques.