High voltage distribution network is an important link between transmission and middle voltage distribution network. If a high voltage distribution network fault occurs, the economy and reliability of the whole city distribution system will be seriously affected. To solve this problem, a traditional reconstruction optimization model is improved and a 2-staged reconstruction optimization model is proposed based on an improved particle swarm optimization (PSO) algorithm. The first stage reconstruction only considers the economic goal and the second stage reconstruction needs consider the boundary constrains. The 2-staged method considers the economic benefit and the voltage quality simultaneously. It can achieve the multi goals: meeting actual boundary operation conditions, optimizing the combination of network losses and the number of operation switching. The fault isolation and reconfiguration of an actual distribution network system in Dezhou power grid were simulated. Simulation results validate the rationality and feasibility of the proposed method