Due to prolonged operation, aging of electrical insulation components, and improper use of electricity, the risk of electrical fires and their incidence rate have been steadily increasing, leading to frequent major and catastrophic electrical fire incidents. To address this issue, a research proposal has been developed to investigate the formation and spread mechanisms of electrical fires in distribution scenarios. Matlab/PSB software and PyroSim software are utilized as simulation and analysis tools. Under the guidance of simulation models and control equation theory, simulations are conducted to analyze the formation and spread mechanisms of electrical fires in distribution scenarios. When the operating current of electrical equipment exceeds 1.732 times the rated current, it can cause the coil to overheat and trigger a fire. To prevent further spread of the electrical fire, the simulation analysis of the fire spread mechanism was expanded. At t=2400s, the temperature reached 1560°C. Additionally, water mist fire extinguishing was employed, and the presence of water droplets was considered to avoid exacerbating the spread of the electrical fire in the distribution scenario. This fully elucidates the formation and spread mechanisms of electrical fires, providing important guidance for user electrical safety and fire protection.