Fault location estimation in transmission lines is critical for power system reliability. Various methods have been developed for this purpose, among which transient frequency spectrum analysis (TFSA) stands out as a recent method based on travelling wave (TW) theory. TFSA determines the fault location by analyzing the frequency spectrum of transient currents and/or voltages at the instant of the fault, offering advantages such as independence from fault impedance and the ability to locate faults with one-side measurements. Despite its success in fault location, TFSA has several considerations that warrant detailed investigation. This study explores the effects of source inductance, series compensation, fault arc, and current transformer (CT) characteristics on transient frequencies. Additionally, the impact of noise on TFSA results is examined. The new proposed source inductance compensation method can reduce the error of 6.55% to 0.88%, where the same error can be reduced to 3.45% with the compensation method given in previous study. Strategies to enhance accuracy are discussed and compared to previous studies, including a proposed detection approach providing appropriate data size and precise wave propagation speed calculations. These findings contribute to a deeper understanding of TFSA’s limitations and inform practical improvements for fault location accuracy in power transmission systems.