In the last 10 yr, the International Atomic Energy Agency (IAEA) revised its safety standards for site evaluations of nuclear installations in response to emerging fault displacement hazard evaluation practices developed in Member States. New amendments in the revised safety guidance (DS507) explicitly recommend fault displacement hazard assessment, including separate approaches for candidate new sites versus existing sites. If there is insufficient basis to conclusively determine that a fault is not capable of surface displacement at an existing site, then a probabilistic fault displacement hazard analysis (PFDHA) is recommended to better characterize the hazard. This new recommendation has generated the need for the IAEA to provide its Member States with guidance on performing PFDHA, including its formulation and implementation. This article provides an overview of current PFDHA state‐of‐practice for nuclear installations that is consistent with the new IAEA safety standards. We also summarize progress in an ongoing international PFDHA benchmark project that will ultimately provide technical guidance to Member States for conducting site‐specific fault displacement hazard assessments.