The accidents of insulation breakdown can be easily happened when suffered by lightning if the insulation level of distribution transformer is lower than that of distribution lines. However, the distribution transformers selection is generally based on the capacity requirements without considering the difference of transformers’ types. In this paper, the equivalent model of lightning broadband is established by ATP-EMTP (electromagnetic transients program, version alternative transients program), considering the different wiring groups and capacities of distribution transformers. The impact of the types of distribution transformers on its lightning tolerance level is analyzed. Finally, the type selection strategies based on the lightning tolerance level is proposed. The results show that the impact of the difference of types and capacities on the lightning tolerance of distribution transformers is remarkable. The lightning overvoltage magnitude of small capacity distribution transformers is relatively high and the lightning tolerance of distribution transformers with the type of Dyn-11 is better than that of Yyn-0. Hence, the capacities and the type groups should be considered comprehensively when selecting distribution transformers.