The invention discloses a distribution network area protecting and self-healing system. The distribution network area protecting and self-healing system comprises a transformer substation and a spacer layer, wherein the spacer layer consists of a plurality of user devices; signals are transmitted via a communication channel; the user devices are electrically connected with a bus on a low voltage side in the transformer substation by a power distribution circuit; a control substation is arranged in the transformer substation and is connected with a feeder protecting device and a distant automatic bus transfer device through the communication channel; the feeder protecting device outputs make and break signals to a medium-voltage feeder switch in the transformer substation; the user devices on the power distribution circuit are connected with circuit breakers; each circuit breaker is connected with a corresponding power distribution terminal device; the power distribution terminal devices are connected to the communication channel via terminal communication devices; and the distant automatic bus transfer device is connected with the user devices and the communication channel. Fault points in a distribution network area are isolated from one another; the power supply of areas without fault points is rapidly recovered; large-range and long-time power failure is avoided; power is stably supplied for important loads of a distribution network; and economic losses caused by power failure are reduced.