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This paper presents a new approach to real-time fault classification in power transmission systems using fuzzy-logic-based multicriteria approach. Only the three line currents are utilized to detect fault types such as LG, LL, and LLG, and then to define the faulty line. An online wavelet-based preprocessor stage is used with data window of ten samples (based on 4.5-kHz sampling rate and 50-Hz power frequency). The multicriteria algorithm is developed based on fuzzy sets for the decision-making part of the scheme. Computer simulation has been conducted using EMTP programs. Results are shown and they indicate that this approach can be used as an effective tool for high-speed digital relaying, as the correct detection is achieved in less than half a cycle and that computational burden is much simpler than the recently postulated fault classification techniques.