The current distribution network is developing toward the direction of information and intelligent distribution Internet of Things (IoT). In order to explore the online monitoring system for transient electromechanical simulation of distribution networks, this paper is based on the equivalent model of generator sets. Firstly, it describes the relevant theoretical knowledge of edge computing, designs the distribution IoT based on edge computing, and briefly introduces its network architecture. Secondly, based on the discrete-time domain equivalent model of generators, the electromechanical transient simulation distribution network is constructed by introducing the machine network division of the power network. Finally, the Western System Coordinating Council (WSCC)-3 units and 9 nodes are taken as an example, and simulation experiments are conducted under two fault simulation conditions to verify the effectiveness of the simulation model. The results show that under the two fault simulation conditions, the results of equivalent model simulation of generator terminal voltage and relative power angle change are like those of the Power System Analysis Software Package (PSASP). The changing trend of the two is similar and stable. After the PSASP results are stabilized at a value, the simulation results fluctuate extremely up and down the value. For example, under fault condition 1, the changing trend of the relative power angle of the No. 2 generator is first fluctuating and then becomes stable. After violent fluctuation, the relative power angle tends to be stable from about 20s to -12.35°. The result of PSASP software is stable at -12.35°. The transient electromechanical simulation of the generator equivalent model can provide some ideas for the online monitoring system of the distribution network.