This paper presents a wavelet based protection scheme for a multi terminal transmission system in presence of SVC. Increase in the power transfer capability and the efficient utilization of available transmission lines, improving power system stability and controllability have made strides and created Flexible AC Transmission (FACTS). These FACTS devices have adverse effects on distance protection. Severe under reaching is the most important problem of relay which is caused by current injection at the point of connection to the system. This work presents a efficient method based on wavelet transform. A wavelet based multi resolution analysis is used to find the detailed coefficients of the signals which are utilized to calculate fault index. These fault indexes are compared with the threshold value to detect and classify faults on transmission system. The proposed algorithm is proved for the detection, classification and location of faults on Transmission lines which is almost independent of fault impedance, fault inception angle, fault distance of transmission line and location of SVC.