Multi-resolution Signal Decomposition (MSD) Technique of Wavelet Transform has interesting properties of capturing the embedded horizontal, vertical and diagonal variations within an image in a separable form. This feature was exploited to identify individual partial discharge sources present in multi-source PD pattern, usually encountered during practical PD measurement. Employing the Daubechies wavelet, feature were extracted from the third level decomposed and reconstructed horizontal and vertical component images. These features were found to contain the necessary discriminating information corresponding to the individual PD sources and multi-PD soruces.