This paper proposes a novel sag/swell detection algorithm based on wavelet transform (WT) operating even in the presence of flicker and harmonics in source voltage. The developed algorithm is the hybrid of Daubechies wavelets of order 2 (db2) and order 8 (db8) to detect voltage sag/swell with and without positive/negative phase jumps. The hybrid detection algorithm can detect the start and end times of voltage sag/swell with and without phase jumps within 0.5 ms and 1.15 ms, respectively. The performance of the proposed voltage sag/swell detection method is compared with the results of dq-transformation, Fast Fourier Transform (FFT) and Enhanced Phase Locked Loop (EPLL) based voltage sag/swell detection methods. The good robustness and faster processing time to detect balanced and unbalanced voltage sag/swell are provided using proposed method. With the proposed hybrid detection algorithm consisting of db2 and db8 wavelet functions, a robust sag/swell detection is achieved which can give precise and quick response. The performance of proposed hybrid algorithm is validated and confirmed through simulation studies using the PSCAD/EMTDC analysis program. (C) 2015 Elsevier Ltd. All rights reserved.