Power quality has become concern both utilities and their customers with wide spread use of electronic and power electronic equipment. The poor quality of electric power causes malfunctions, instabilities and shorter lifetime of the load. In power system operation, power system disturbances such as faults, overvoltage, capacitor switching transients, harmonic distortion and impulses affects power quality. For diagnosing power quality problem, the causes of the disturbances should be understood before appropriate actions can be taken. In this paper we present a new approach to detect, localize, and investigate the feasibility of classifying various types of power quality disturbances. This paper deals with the use of a multi-resolution analysis by a discrete wavelet transform to detect power system disturbances such as interruption, sag, swell, transients, etc. We also proposed do-noising and threshold technique to detect power system disturbances in a noisy environment. To find the better mother wavelet for detecting disturbances, we compared the performance of the disturbance detection with the several mother wavelets such as Daubechies, Symlets, Coiflets and Biorthogonals wavelets. In our analysis, we adopt db4 wavelet as mother wavelet because it shows better results for detecting several disturbances than other mother wavelets. To show the effectiveness of the proposed method, a various case studies are simulated for the example system which is constructed by using PSCAD/EMTDC. From the simulation results. proposed method detects time Points of the start and end time of the disturbances.