The early fault identification in high-voltage power systems is a substantial aspect not only to minimize equipment failurebut also to increase both the reliability and stability in power system. Subsequently, the aim of this paper is to proposethe adaptive fault-identification scheme based on multi-resolution analysis technique. The proposed method is dependenton monitoring both voltages and currents from single-endedmeasuring system. The correlation among the reactive powercomputation and discrete wavelet transform is used to generate the significant criteria which are used to discriminate betweenshort-circuit currents and energizing heavy loads behaviour. Different transmission network configurations are investigated toassess the dependability, security, and reliability of fault identification relay as well. The correlative protectionscheme attainsthe accurate results under healthy disturbances, and therefore it is superior to other conventional approaches. In addition,a selective study is applied to different mother wavelets to find the best one. The response of the proposed scheme to thecompensated transmission line is also verified at a wide range of compensation levels with faults before and after compensatedbank. Simulation tests have been handled via ATP-EMTP to investigate the proper practicability and adaptability of thefault-identication relay.