Faults in the power system affect the reliability, safety, and stability. Power-distribution systems are familiar with the different faults that can damage the overall performance of the entire system, from which they need to be effectively cleared. Underground power systems are more complex and require extra accuracy in fault detection and location for optimum fault management. Slow processing and the unavailability of a protection zone for relay coordination are concerns in fault detection and location, as these reduce the performance of power-protection systems. In this regard, this article proposes an optimized solution for a fault detection and location framework for underground cables based on a discrete wavelet transform (DWT). The proposed model supports area detection, the identification of faulty sections, and fault location. To overcome the abovementioned facts, we optimize the relay coordination for the overcurrent and timing relays. The proposed protection zone has two sequential stages for the current and time at which it optimizes the current and time settings of the connected relays through Newton−Raphson analysis (NRA). Moreover, the traveling times for the DWT are modeled, which relate to the protection zone provided by the relay coordination, and the faulty line that is identified as the relay protection is not overlapped. The model was tested for 132 kV/11 kV and 16-node networks for underground cables, and the obtained results show that the proposed model can detect and locate the cable’s faults speedily, as it detects the fault in 0.01 s, and at the accurate location. MATLAB/Simulink (DigSILENT Toolbox) is used to establish the underground network for fault location and detection.