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Wavelet transform (WT) has the ability to decompose signals into different frequency bands using multiresolution analysis (MRA). It can be utilized in detecting faults and to estimate the phasors of the voltage and current signals, which are essential for transmission line distance protection. A digital distance-protection scheme for transmission lines based on analyzing the measured voltage and current signals at the relay location using WT with MRA is presented in this paper. The scheme has been tested by both computer simulation and experimentally. The tests presented include solid ground faults, phase faults, high impedance and nonlinear ground faults, and line charging.