This paper presents the novel approach in protection and detection techniques of Alternator stator winding from the earth faults which are simulated between 2% to 10% distance point from the alternator neutral, since the impedence at that distance is very high we can not detect or protect by normal methods. The transient produced is analyzed in discreet Wavelet transforms. The potential of using discreet wavelet transforms in protection relay is examined and model of relay using transient phenomenon to fault in the winding in alternator stator is proposed and next integrated into ATP integration program.