Power distribution networks with distributed generation (DG) face challenges in fault diagnosis due to the high uncertainty, randomness, and complexity introduced by DG integration. This study proposes a two-stage approach for fault location and identification in distribution networks with DG. First, an improved bald eagle search algorithm combined with the Dijkstra algorithm (D-IBES) is developed for fault location. Second, a fusion deep residual shrinkage network (FDRSN) is integrated with IBES and support vector machine (SVM) to form the FDRSN-IBS-SVM model for fault identification. Experimental results showed that the D-IBES algorithm achieved a CPU loss rate of 0.54% and an average time consumption of 1.70 seconds in complex scenarios, outperforming the original IBES algorithm. The FDRSN-IBS-SVM model attained high fault identification accuracy (99.05% and 98.54%) under different DG output power levels and maintained robustness (97.89% accuracy and 97.54% recall) under 5% Gaussian white noise. The proposed approach demonstrates superior performance compared to existing methods and provides a promising solution for intelligent fault diagnosis in modern distribution networks.