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In this paper, a discrete wavelet transform (DWT) and independent component analysis (ICA) based approach is proposed for fault detection in a series compensated transmission line. The different types of faults are created using MATLAB/Simulink and the faulty negative sequence component of current signal is extracted using sequence analyzer. The negative sequence current signal is passed through DWT and ICA for detecting the faults under both no-noise and 20 dB noise scenarios. Further, performance indices (PI) like standard deviation (STD) and energy content are determined to validate the graphical results. Both graphical and PI results show the efficacy of ICA under noisy condition.