Abstract: Neutral displacement overvoltage is harmful to power equipment. A method of suppressing the neutral point displacement overvoltage and its suppression circuit are proposed in this paper to restore it to a normal level. First, it is judged if the neutral point displacement voltage is greater than the set value. Then, the previous and current currents on the arc suppression coil are measured. Next, current is injected at the neutral point of the grid. Finally, it is judged whether the zero-sequence overvoltage of the distribution network is successfully suppressed. The feasibility of the suppression method and the suppression circuit proposed in this paper is proved by the experimental results. This method is great significance for suppressing the displacement overvoltage of the neutral point of the distribution network.