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Dissolved gas analysis (DGA) is one of the most useful techniques to detect the incipient faults of power transformer. However, the identification of the faulted location by the traditional method is not always an easy task due to absolute ratio and some of the gas ratio code (e.g. 011) outside normal operating condition by the IEC method. In this paper, a fuzzy set analysis theory and method were described and applied to the diagnosis of power transformer. The practical examples were cited.