A fault location method and a fault clearance strategy are presented in this paper for medium voltage dc (MVDC) distribution system. MVDC systems are applicable for connection between microgrids (MGs) and integration of renewable energy systems (RESs) to distribution systems. Due to the specifications of fault current in dc systems, it is difficult to coordinate the over current (O/C) relays based on the time inverse grading. Hence, in this paper, a communication link between O/C relays is used to diagnose the fault location. On the other hand, the fault clearance is done by the operation of dc circuit breakers (DCCB) and isolator switches. In this protection strategy, O/C relays detect the faulty part using communication links and after the fault extinguishing by DCCBs, the dc switches isolate the faulty part. Finally, the sound parts of the system re-energize when DCCB are re-closed. Moreover, data transmission by communication links is based on the standard messages of IEC61850 protocol.