Underground cables with cross-linked polyethylene (XLPE) insulation are integral to medium voltage (MV) power transmission systems, ensuring continuous electricity supply amidst operational challenges and environmental conditions. However, the reliability of these cables can be compromised over time due to aging and installation-related factors, particularly at joints and terminations. This study offers a comprehensive analysis of how various defects, including spherical air voids, pinholes, and irregularities in semiconducting layers, affect electric field and potential distributions within cable end terminations using COMSOL Multiphysics software. Through detailed simulations, the study identifies significant variations in electric field strength caused by these defects, highlighting critical stress concentration areas. In this study, it assumed that the cable and termination have the same cross-section. By analyzing these simulations, the study provides insights into optimizing cable design and installation practices to enhance the reliability and lifespan of underground power transmission systems. This study introduces a novel approach by combining advanced COMSOL Multiphysics simulations with a detailed analysis of defect impacts on electric field distributions, offering new insights into stress concentrations and degradation at cable terminations. Simulation outcomes reveal significant variations in electric field strengths due to air voids and pinholes in cables and terminations: for 2 mm voids, up to 2.45×106 V mm−1 near the conductor and 56.5 V mm−1 at termination. These findings enhance the understanding of XLPE-insulated cable behavior under electromagnetic stress, providing a basis for mitigating failures and improving overall system performance.