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A novel method for Ferroresonance detection is presented in this paper. Using this method Ferroresonance can he discriminate from other transients such as capacitor switching, load switching, transformer switching. Wavelet transform is used for decomposition of signals and competitive neural network used for classification. Ferroresonance data and other transients are obtained by simulation using EMTP program. Results show that the proposed procedure is efficient in identifying Ferroresonance from other events.