As the degree of AC-DC hybridization of power grids is increasing, their fault characteristics become more complex, and the current hybrid grid fault diagnosis methods, despite their high accuracy, are not sufficiently adaptable, so there is an urgent need to study new grid fault diagnosis methods. To this end, the Markov Transition Field combined with an improved Resnet fault line identification method for AC-DC hybrid grids is proposed. First, the data is reconstructed by the improved complete ensemble empirical mode decomposition with adaptive noise, and then the MTF is used to transform the one-dimensional signal into a two-dimensional picture, then on the basis of residual neural network, the original network is improved by adding multi-branch cavity convolution structure and Ghost module, and the fault features are adaptively extracted and classified by the improved network, so as to realize faulty line identification. The experimental results show that the proposed method can effectively identify the fault lines of AC-DC hybrid power grid, the improved residual neural network can dig out the fault features more deeply, and has strong anti-noise and antidata loss interference ability, the method has 99.91% fault line identification accuracy. It has higher recognition performance compared to traditional machine learning algorithms and various deep learning algorithms.