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A new method for cable fault detection, based on the wavelet analysis of the measurement results, is proposed. First, frequency domain measurements of the scattering parameter at the input section of the cable is carried out. Then the obtained results are transformed in the time domain by using the IFFT algorithm. Finally, the wavelet analysis is applied to the time domain results in order to detect defects in the cable. Two different wavelets, the discrete wavelet transform (DWT) and the continuous wavelet transform (CWT), are examined and compared. The proposed procedure is tested by detecting and localizing low entity faults in shielded cables.