Increasing the power transfer capability and efficient utilization of available transmission lines, improving the power system controllability and stability, power oscillation damping and voltage compensation have made strides and created Flexible AC Transmission (FACTS) devices in recent decades. Shunt FACTS devices can have adverse effects on distance protection both in steady state and transient periods. Severe under reaching is the most important problem of relay which is caused by current injection at the point of connection to the system. Current absorption of compensator leads to overreach of relay. This work presents an efficient method based on wavelet transforms, fault detection, classification and location using Fuzzy logic technique which is almost independent of fault impedance, fault distance and fault inception angle. The proposed protection scheme is found to be fast, reliable and accurate for various types of faults on transmission lines with and without Static Var compensator at different locations and with various incidence angles. © 2014, The Institution of Engineers (India).