In the current integration configuration process of smart substation, integrators manually configure the virtual terminator connection in SCD file according to the virtual terminator connection table provided by the design institute, which is not only heavy workload, time-consuming, but also prone to connection errors. For this reason, by analyzing the structure of Substation element in SCD file and the virtual terminator connection of typical bay, a typical bay virtual terminator connection template is defined, in which the IED is represented by secondary device type. In the process of automatic configuration, the bay in the primary wiring diagram is mapped to the typical bay, and then the IED associated with the primary device in the bay is mapped to the secondary device type in the typical bay. Finally, the virtual terminator connection is configured for IED according to the virtual terminator connection between the secondary device types. This method can be used to develop the virtual terminator automatic connection function of the system configuration tool, which can simulate the virtual terminator automatic connection of the bay in the new station and the expansion project, and help to shorten the virtual terminator connection configuration time.