This article presents a phase-domain based fault location algorithm for unbalanced power distribution systems with distributed generation. Unsynchronized voltage and current measurements, taken from the sources prior and during the fault, are utilized to calculate the equivalent source impedances and the incremental current quantities required. The latter are substituted into the fault location equations, which are solved to determine the fault resistance(s), the synchronization angles, and the possible fault positions. Multiple possible fault position estimations are eliminated by applying an index-based methodology to find the exact fault position. Extensive simulations are performed for a benchmark distribution system with conventional and inverter-interfaced generation units, considering all types of common short-circuit faults, several fault resistance magnitudes, varying load levels, different distributed generation (DG) mixture, and the impact of line segment length. The results show that fault distance is accurately estimated by the proposed algorithm.