The aim of this work is to analyze possibility of using parameters of an oscillating transient component which appears during fault condition in HVDC systems for detection and localization of faults. Two main parameters of mentioned components are considered, amplitude and frequency, which naturally are associated with parameters of circuits during fault determined by location of the fault. Proposed principle of the method is based on a reference characteristic between parameters of the oscillating component and the fault location. This reference function can be created using benchmarking transient signals. Using this function fault location can be estimated using amplitude and frequency of transient oscillating component. The parameters of the oscillating transient component a Prony method is proposed. Advantage of the method is possibility for application in the measurement systems with low sampling rate in the range of 5–100kHz. This condition locate proposed method as alternative or supplemented to traveling wave method which requires high sampling rate systems due to high time resolution requirements.