To solve shortcomings of existing multi-terminal transmission lines methods and improve fault location accuracy, a novel fault traveling detection method is proposed based on VMD-Hilbert transformation and a novel fault location method for multi-terminal transmission lines is proposed based on difference matrix. Fault traveling signals are decomposed into several IMF signals by VMD method. Then IMF1 signal is analyzed by Hilbert transformation. According to the first singular point position of instantaneous frequency time, the traveling wave arrival time is determined. Based on traveling wave arrival times at each terminal and traveling wave transmission principle, a fault branch judgment matrix for multi-terminal transmission lines is built. According to fault branch judgment matrix, fault branches and fault location are determined. Simulation results show that the proposed method can accurately detect the arrival times of fault traveling wave and multi-terminal transmission lines location algorithms can accurately determine fault branches and realize precise location.