This paper presents the results of investigation into a new fault classification and location technique, using EMTP software. The simulated data is then analyzed using advanced signal processing technique based on wavelet analysis to extract useful information from the signals. The artificial neural network (ANN) and the fuzzy logic system (FLS) is then used to detect the type and the location of the ground high impedance, ungrounded series, ungrounded and ground shunt faults in a practical underground distribution system (UDS). The results indicate that the fault location technique has an acceptable accuracy (error < 1.5%) under the whole variety of different systems and fault conditions. Therefore, the proposed approach can have high performance for the evaluation of the fault location and classification.