Fault location is one of the main challenges in the distribution network due to its expanse and complexity. Today, with the advent of phasor measurement units (PMU), various techniques for fault location using these devices have been proposed. In this research, distribution network fault location is defined as an optimization problem, and the network fault location is determined by solving it. This is done by combining PMU data before and after the fault with the power system status estimation (PSSE) problem. Two new objective functions are designed to identify the faulty section and fault location based on calculating the voltage difference between the two ends of the grid lines. In the proposed algorithm, the purpose of combining the PMU in the PSSE problem is to estimate the voltage and current quantities at the branch point and the total network nodes after the fault occurs. Branch point quantities are calculated using the PMU and the governing equations of the π line model for each network section, and the faulty section is identified based on a comparison of the resulting values. The advantages of the proposed algorithm include simplicity, step-by-step implementation, efficiency in conditions of different branch specifications, application for various types of faults including short-circuit and series, and its optimal accuracy compared to other methods. Finally, the proposed algorithm has been implemented on the IEEE 123-node distribution feeder and its performance has been evaluated for changes in various factors including fault resistance, type of fault, angle of occurrence of a fault, uncertainty in loading states, and PMU measurement error. The results show the appropriate accuracy of the proposed algorithm showing that it was able to determine the location of the fault with a maximum error of 1.21% at a maximum time of 23.87 s.