The most common power quality problems in electrical distribution systems are related to single phase to ground faults causing unbalanced voltage sags. One of the most widely used methods for sag detection is conventional method based on d-q transformation. However, this method has the disadvantage of missing the detection of single phase-to-ground faults, because this method uses a voltage sag level signal obtained from the average of three phase voltages for sag detection. In this paper, an adaptive filter based sag detection method is proposed for solid state transfer switch (SSTS). Simulation models of the SSTS using the adaptive filter based proposed and d-q transformation based methods are developed by PSCAD/EMTDC program. Simulation results show that, the SSTS using proposed method is able to detect three phases and/or single phase voltage sags, correctly. To validate the simulation model and results, a three-phase experimental SSTS prototype is successfully constructed and experimental results are presented.