A scheme based on wavelet for construction of the fast protection and fault location for series compensation is described in this paper. Current travelling waves, which are more easily captured than voltage waves, are used and decomposed into mode components. The line mode component is represented by its wavelet modulus maxima. The incident and reflection traveling waves are identified by analyzing the amplitudes and polarities of their wavelet modulus maxima. The interval between incident and reflection travelling waves reveals the fault position. EMTP simulations proved that the scheme is correct and effective.