The arc suppression device based on ground fault transfer (GFT) has been preliminarily applied in the medium voltage distribution network (MVDN). An accurate travelling wave (TW) fault location method is proposed to extend the use of the ground fault transfer device. D-PMU is used as a travelling wave detection tool to record the transient voltage travelling waves of fault grounding and bus active grounding during arc suppression. Then, the faulty section is identified through the time difference of travelling wave arrival at the upstream and downstream measurement points. On this basis, the fault location equations of the arrival time and distance of the upstream travelling wave are established, and an accurate fault location method based on the arrival time difference of the travelling wave is proposed. The simulation model is established by PSCAD/EMTDC, and the results show that the method has high location accuracy, and the absolute error is less than 30 m. It is not affected by the TW velocity, the fault conditions, or the distributed power sources.