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- A generator plays an important role in transferring an electric power to power system networks. The generator protection systems in Korea have been imported and operated through a turn-key from overseas entirely. Therefore, a study of the generator protection field has in urgent need for a stable operation of the imported goods, and for preparation of next generation protection system. The paper describes the fault detection algorithm using WT(Wavelet Transform) of currents for a generator protection. The fault current signals after executing a terminal fault modeling collect using a MATLAB package, and calculate the wavelet coefficients through the process of a multi-level decomposition (MLD). The proposed algorithm for a fault detection using the Daubechies WT (wavelet transform) was executed with a C language for the command line function and for the real time realization after analyzing MATLAB’s graphical interface. The advanced technique had complemented the defects of a DFT by applying a Daubechies WT, and had improved faster a speed and more accurate of fault discriminant than a conventional DFR.