Abstract: The fault indicators（FIs） with low cost and flexible installation are often used in conjunction with the feeder remote terminal units（FRTUs） with remote control capability to accomplish fault location and isolation in distribution networks to reduce load outage time. The selective deployment of FRTUs and FIs with distribution automation terminals at each switching location or branch line of the distribution network can reduce the cost of fault outage losses. For this purpose, a new hybrid optimal configuration method for FRTUs and FIs considering the outage differentiation of each power supply load is proposed. Firstly, according to the relative positions of the load to be analyzed, the fault point, the superior 110 k V/35 k V substation, and the contact switch, the relationship equation of the differentiated outage time of each power supply load based on the hybrid configuration scheme of FRTUs and FIs is established considering the whole process of fault location, fault isolation, and power supply restoration under the synergistic effect of FRTUs and FIs. Then, a mathematical model of hybrid optimal configuration is constructed with the objective of minimizing the sum of the whole life cycle cost and fault outage loss cost of FRTUs and FIs, and the optimization solution is completed. Finally, the effectiveness of the proposed method is verified by the CSG 53-bus test system.