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Acoustic Partial Discharge (PD) detection method is useful tool to locate PD source in oil-filled transformers. We have studied acoustic wave propagation characteristics, to improve the diagnostic technique for electric power transformer. This paper also reports on new PD location method with considering oil-filled transformer internal structure by numerical simulation of acoustic wave propagation using finite element method. The numerical simulation was carried out for an actual transformer model in which a PD source was set between windings, iron core and a tank. Calculated acoustic signals were examined in time-frequency domain using the wavelet transform analysis. From these results, enhancement of identification precision of PD source location was discussed.