This study proposes a protection relay using a microcontroller to detect and classify faults in transmission lines based on the wavelet transform. An experimental model was constructed from an actual 115 kV transmission system prototype. The current signal was observed based on the fault type, phase, and position. Clark’s transform and the discrete wavelet transform (DWT) were applied to transform signals for analysis. Moreover, the performance of fault detection based on the output signals of Clark’s transform (alpha sequence, beta sequence, and zero sequence current) was compared to the performance of the alternative proposed fault detection method, which is based on the combining factor between alpha and beta sequence current. In addition, the influence of DWT level on fault analysis is also considered and is used to confirm the accuracy of fault detection. Results show that the proposed method is efficient for fault detection and classification. This finding allows the researcher to choose the appropriate analytical method. Moreover, it can also be used as the basis for overcurrent relay algorithm design in the effort to develop more advanced technologies.