Recently, power supply quality has become an increasingly important topic due to rapid development of the high-tech and precision instrument industries. Therefore, the quality of stable power supply is one of the main issues. Monitoring methods can be used to investigate the causes of the power supply faults so as to make further improvements. Therefore, the power system fault monitoring is one of the most important research topics. This thesis focuses on the analysis of the temporary states of different kinds of the power system faults (single line-to-ground faults, line-to-line faults, double line-to-ground faults and three line-to-ground faults). This thesis utilized the wavelet transform fault monitoring method with the neural network techniques to implement the identification of power system faults. To assess the performance of the proposed approach, this approach has been tested on many power system fault signals by MATLAB/SIMULINK. The accuracy and efficiency of the proposed approach are verified under many different fault cases. The results show the proposed approach can identify the power system fault correctly.