The transmission line is an essential part of the power system and since itis exposed to the harsh environmental conditions, it is susceptible to opencircuit and short circuit faults. As the occurrence of failures affect the qualityof the electric power supplied, identifying the fault and clearing it quickly iscritical for the reliable power system operation. Fault Diagnostics of a multibus system is crucial for Power system stable operation. In this paper, a five-bus system is taken up for the study and twelve different types of faults withvarying fault durations are applied in transmission lines at different locations.Then Discrete Wavelet Transform (DWT) is applied to the receiving endcurrent signals of the line and derived wavelet coefficients are used to identifythe type of fault. Simulation and extraction of wavelet coefficients are done in MATLAB Simulink and results are presented. The Model Developed of a fiveBus system for Fault Diagnostics and Simulation can be used as Frameworkfor Fault Classification and Localization. The derived Wavelet Transformproves to be appropriate for the Framework developed.