Abstract: In order to meet the actual demands of distributed management of microgrid group data, the distributed mode needs to be adopted in the state estimation of microgrid group. In this paper, a distributed bad data identification method is firstly proposed to realize the detection and identification of bad data in microgrid group system, and a two-layer distributed state estimation algorithm is proposed based on the augmented Lagrangian alternating direction inexact newton (ALADIN) method. In terms of the amount of data exchange, independent state estimation is performed in each partition, boundary coupling information of adjacent partitions is only exchanged between partitions, and the Conjugate Gradient (CG) algorithm is utilized to update the Lagrange multiplier of each partition, thus avoiding information privacy exposure. The results of calculation examples based on 5-node and 21-node microgrid cluster systems show that the distributed state estimation algorithm in this paper can identify leverage measurement in a distributed manner and effectively process bad data. It has the characteristics of less information exchange between partitions and good convergence, and is able to achieve the solution accuracy of centralized calculation.