This paper presents a wavelet transform based alienation technique for the protection of a radial 5 bus distribution system integrated with four wind type doubly fed Induction generators (DFIG).This technique is used to detect islanding condition and faults, classification of faults and their discrimination. Islanding is simulated at point of common coupling (PCC) and faults are simulated at each DG bus of the network. Daubechies wavelet transform has been used to decompose the current signals to get approximate coefficients. The Alienation coefficients of these approximate decompositions are termed as islanding and fault indexes. These indexes have been compared with predetermined threshold to detect islanding and faults. The same threshold value is utilized to discriminate transients associated with islanding and fault. Alienation coefficients at each bus over a half cycle window clearly detect both islanding and fault. Testing of the proposed algorithm has been carried out for various angles of incidence. Hence, the proposed algorithm is more effective and successful for finding the islanding condition as well as faults in distribution system with distributed generation. © 2019 Institute of Advanced Engineering and Science. All rights reserved.