In view of the limitations of the traditional double-ended traveling wave ranging method in new energy grid-connected transmission lines and the inability to effectively extract the deep characteristics of the traveling wave intrinsic frequency. This paper proposes a new energy grid-connected line fault localization method based on the fusion of Variational Mode Decomposition (VMD) and Multiple Signal Classification (MUSIC). Firstly, the fault traveling wave signal is decomposed into multiple intrinsic modal components by improving VMD; then, the spectrograms under the corresponding modes are obtained by using MUSIC to realize the accurate extraction of the intrinsic frequency of the traveling wave; Finally, the fault distance is calculated based on the relationship between the fault distance at the monitoring points at each end and the known line length. Simulation results show that the method can overcome the influence of spectral aliasing on the extraction of the principal component of the intrinsic frequency, and can accurately determine the fault interval, and the localization results are not affected by the fault distance, the fault type, and the fault resistance, which has good adaptability and high localization accuracy.