The current transformer (CT) saturation phenomenon has been one of the main problems for the power transformer differential protection, leading to incorrect current measurements and relay misoperation. This paper proposes a fast and efficient transformer differential protection scheme with additional differential CT saturation and cross-country fault detection modules after the external fault detection, all of them based on the differential wavelet coefficient energy with border distortions in order to stabilize the relay during external faults and distinguish accurately CT saturation from cross-country internal faults. The proposed method was assessed by using representative simulations of internal faults, transformer energizations, and external faults with CT saturation followed by cross-country internal faults, and good results were achieved.