Most of the high impedance faults (HIF) remain un-detected by the conventional relays due to non-linear nature of the fault and low magnitude of current. In this work, a combination of discrete wavelet transforms (DWT) and fuzzy inference system (FIS) has been proposed for HIF detection and classification. Modified IEEE 13 node test feeder system has been to validate the proposed scheme. The proposed method uses current signals from one end that are pre-processed using discrete wavelet transform to obtain appropriate input features. The wavelet processed features are given to the FIS for fault detection and classification. Proposed method has been validated using both Mamdani and Sugeno type FIS. Different operating and fault conditions are tested to validate the proposed method such as varying DG parameters, noisy signals, HIFs, evolving faults, fault inception angle, fault resistance, fault location, and non-fault events (e.g. motor load switching, capacitor switching, DG switching, transformer energization, non-linear load switching). The accuracy in detecting and classifying the faults is 100% of all the tested fault cases. Results shows that the overall detection time required to detect the HIFs is minimum 4.25 cycles in most of the cases and maximum 8 cycles in few cases whereas for shunt faults is within 4.25 to 6 cycles only. Advantage of the proposed method is that it can detect adverse situation faults like evolving faults, in presence of noisy signals and remains intact against any switching events. The results of the proposed method are promising and the method is robust against various operating conditions.