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This paper presents an extension of real-time tests of a wavelet-packet-transform-based technique for the differential protection of three-phase power transformers. The proposed technique is implemented using a DS1102 digital signal processor board and tested on two different three-phase power transformers with neutral resistance grounded. Different magnetizing inrush and internal fault currents are investigated with current transformer (CT) saturation for different loading conditions, including capacitive loads. The results show a complete independence from transformer parameters, load types, grounding method, or CT saturation. Furthermore, the proposed technique has high speed, good accuracy, small required memory, and reliable responses with reduced computational burden. In all cases of the investigated internal faults, the proposed algorithm is capable of identifying the fault and generating a trip signal in less than a quarter cycle based on a 60-Hz system.