Proper grounding performance of distribution lines tower is a prerequisite for installing overhead grounding wires. It is the most economical and effective way to reinforce the lightning protection capability of distribution lines. However, the practical construction area for grounding resistance reduction is often limited in practical cases. Therefore, we proposed a new grounding resistance reduction method by applying flexible graphite grounding module for distribution lines tower. Different flexible graphite module setup and number were compared to find an appropriate construction strategy. The calculation and analysis of flexible grounding modules was carried out. The influence of factors such as layout, soil conditions and grounding grid type on the characteristics of compact grounding dispersion was studied in detail. Simulation results indicated that the proposed grounding resistance reduction method was significantly appropriate for distribution line tower. The grounding modules should be arranged vertically. With the increasing number of grounding module groups, the reduction tendency of grounding resistance decreases in distribution lines tower grounding grid.