In the present paper, a wavelet transform based alienation technique has been presented for the detection of islanding condition in a distribution system incorporate with distributed generations. A radial five bus system integrated with four doubly fed induction wind generators (DFIG) has been considered for the study. The voltage signals at various DG buses were decomposed with Daubechies wavelet transform to get approximation coefficients. The alienation coefficients of these approximate decompositions were termed as Islanding indexes. These indexes were compared with a predetermined threshold to detect Islanding condition. The same threshold value was utilized to discriminate a transient associated with sudden changes with load. The suggested algorithm was established by a few case studies involving changes in incidence angle and load. Thus, the proposed algorithm is found to be successful for Islanding detection. © BEIESP.