This paper presents a fault location algorithm when there are parallel circuits in power system networks. In transmission networks, a fault location method using the distribution factor of fault currents is introduced and in distribution networks a method using direct 3-phase circuit analysis is developed, because the distribution networks are unbalanced. The effect of parallel circuits in fault location is studied in this paper. The effect is important for the range of protecting zones of distance relay in transmission networks and fault location in distribution networks. The result of developed fault location algorithm shows high accuracy in the simulation that using the EMTP.