This paper presents a method for recognition of power quality disturbances using Stockwell's transform. Power quality disturbances are generated using MATLAB as per IEEE standards. Various features of signals are extracted from the multi-resolution analysis based on Stockwell's transform. These features are used to classify various power quality disturbances using the rule-based decision tree. It is observed that high efficiency of classification is achieved using S-transform based ruled decision tree. The investigated power quality disturbances include voltage sag, swell, interruption, harmonics, notch, flicker, oscillatory transient, impulsive transient and spike. Effectiveness of the proposed algorithm has been established by satisfactory results of various case studies. © 2016 IEEE.