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This paper introduces a state-diagram-based protective algorithm for parallel circuit transmission lines using local information obtained at the relay bus. A new cross-differential technique is proposed which compares the currents in the corresponding phases of the parallel circuits in a 2-D space. A companion impedance-based algorithm is used to cover the evolving faults and some conditions in which the cross-differential technique is not able to discriminate the internal faults alone. The effect of the mutual coupling between parallel circuits on the measured impedances is adaptively compensated according to the status of the parallel circuit currents in the segmented 2-D space. The proposed state-diagram-based algorithm combines the outputs of the cross-differential and impedance-based techniques to provide a reliable response under all of the operating statuses of the parallel circuits. Extensive simulation studies using PSCAD/EMTDC software indicate that the proposed approach provides very reliable protection for the double-circuit transmission lines. It covers intercircuit and evolving faults, and is able to reliably select the faulted phases.