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The monitoring and prevention of insulation failure becomes essential for uninterrupted functioning of high voltage power apparatus. There are various techniques available to analyze the degradation of insulation. In this regard measurement and identification of Partial Discharge is non destructive method to predict the status of insulation well in advance. This Partial Discharge signals are interfered with noises which affects the diagnosis of measurement. Hence Wavelet analysis of Discrete Wavelet transform is proposed for denoising of PD signals and extracting the features of PD signals. It can prevent the further degradation of insulation and avoid major breakdown of High voltage apparatus.