The paper proposes a new protection scheme for multi-terminal transmission systems with STATCOM compensation, focusing on accurate fault detection, classification, and location estimation using wavelet transform and fuzzy inference systems. Digital simulations demonstrated the scheme's effectiveness in identifying faults with high accuracy within half a cycle, indicating its suitability for both compensated and non-compensated systems. The use of detailed coefficients from current signals enables rapid detection and terminal identification, which is crucial for enhancing power system reliability.