This paper presents the results of an analysis of distributed two-stage coordination of network topology processor for HVDC grids. In the first stage of the two-stage processor, the substation topology is analyzed locally using an automated graph based algorithm. Thereafter, a distributed algorithm is proposed to used the neighboring information to realize the grid connectivity. For distributed islanding detection, the connectivity problem is formulated as a set of linear equations and solved iteratively using successive-over-relaxation method. The performance of the proposed methods versus conventional one-stage method has been tested in an islandinv, scenario for a 5-terminal HVDC grid.