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Series capacitor protected by metal-oxide varistor and air-gap arrangement imposes problems to line protection and other online decisions. Discrete wavelet transform integrated with a fuzzy logic system is designed for fault classification of a transmission line possessing a series capacitor at the midpoint. The approach uses information obtained from the wavelet decomposition of current signals for faulty phase selection and section identification. Two different FLSs are designed for the two classification objectives in this paper.