A new technology of lightning location is described, which is based on detecting the state of polarization (SOP) fluctuation of the laser light in the optic ground wire (OPGW). Compared with the conventional lightning location method, the new method is more accurate, more stable, and cheaper. Theories of Stokes parameters and Poincare sphere are introduced to analyze the SOP at the lightning strike point. It can be concluded that although the initial points of SOP on the Poincare sphere are random, the SOP fluctuation generated by lightning strike can still be accurately identified by detecting the velocity of polarization motion. A new algorithm to quantify the velocity is also introduced.