AbstractPower cable is mainly responsible for the transmission and distribution of electric energy in the power grid. The performance of a power cable greatly affects the reliability and security of the power supply. In order to solve the problem of cable aging caused by long‐term operation and various internal and external factors, this paper proposes an abnormal line loss identification method for a low‐voltage distribution network station area, aiming at focusing on the monitoring of cable aging. The transmission characteristic model based on the transmission line theory and the dielectric constant model of the aging cable insulation layer is established, and the internal relationship between the transmission characteristic and the aging characteristic is analyzed. The characteristic extraction algorithm is used to extract the characteristics of the transmission characteristic curve. Through simulation analysis, for the abnormal line loss fault, the location accuracy of different fault locations is basically at the level of 0.1–0.3%. The simulation of local defects in the cable shows that the change of material dielectric constant is more clear for the characterization of cable aging. The monitoring method in this paper is helpful to provide the relevant basis for the line maintenance plan and the operation strategy of the power grid and is of great significance to ensure the safe and stable operation of the power grid.