Power line insulator defect identification usually suffers from complex backgrounds, small defect target sizes, and inconspicuous defect features. Traditional identification methods based on image processing, image analysis, and pattern classification have many limitations in solving the aforementioned problems. In recent decades, deep learning classification methods have gradually replaced traditional identification methods in the task of power line insulator defect identification. To accurately identify the locations of insulator defects, this paper proposes an insulator defect detection algorithm using an improved lightweight YOLOv4‐tiny network (ILYTN). First, the CBL (Conv‐BN‐LeakyReLU) modules of the backbone network are replaced with MobileViT blocks to enhance the feature extraction capability of the backbone network. Second, coordinate attention (CA) is introduced in the feature fusion part to improve the network's ability to focus on the location of defects. Finally, an EIOU (efficient intersection over union) loss function, instead of the original CIOU loss function, is used so that the convergence speed of the network can be improved. To verify the effectiveness of the proposed algorithm in this paper, the mViT‐yolo algorithm is compared with the mainstream Faster‐RCNN algorithm, SSD algorithm, YOLOv3 algorithm, and YOLOv4‐tiny algorithm. The experimental results show that the algorithm proposed in this paper outperforms all the above algorithms in terms of detection accuracy. Compared with the traditional YOLOv4‐tiny algorithm, the proposed algorithm increases the mean average precision (mAP) by 1.64%, the average precision (AP) of missing insulator defects by 0.32%, and the average precision (AP) of broken insulator defects by 4.96%. © 2023 The Authors. IEEJ Transactions on Electrical and Electronic Engineering published by Institute of Electrical Engineer of Japan and Wiley Periodicals LLC.