The single pole-to-ground (SPG) fault is one of critical failures which will have a serious impact on the stable operation of the multi-terminal DC distribution network based on the modular multilevel converter (MMC). It is very significant to analyze fault characteristics for detecting faults and protection design. This paper established the DC SPG fault model, which showed that in the presence of a reactor, the short-circuit current was reduced from 2.3 kA to 1 kA at 6 ms after the fault. Then, a novel SPG fault protection strategy was proposed, which detected the current derivative in connection transformer grounding branch. When the value increases past the threshold of current derivative, small resistance was switched on to increase fault current. Thus, the reliability of differential protection was enhanced. Compared with the traditional protection method, the proposed method does not need communication, and improved the speed of protection. Finally, the simulation model was established in PSCAD/EMTDC. The model included three converter stations: T1, T2 and T3. Among them, T1 outputs power, and T2 and T3 receive power. The results of RTDS showed that the DC circuit breaker operated within 3 ms, the three-port circuit breaker worked within 50 ms, which proves that the proposed strategy was effective. At this time, the system switched from the T1–T2–T3 three-terminal networking operation mode to the T1–T2 two-terminal hand-in-hand operation mode. Since the T3 terminal no longer received power, the transmission power of the T1 terminal decreased, and the received power of the T2 terminal remained unchanged.