Overhead lines in a transmission system are the most vulnerable component to natural or human attacks that lead to different severities of faults and create power quality (PQ) disturbances such as voltage sags. The transmission network failure can cause the supply voltage interruptions and significant economic loss. The faulted lines or busses must be quickly identified and taking required remedial actions becomes an urgent issue to maintain the reliable power system operation. This paper gives an overview of the faulted bus or line tracking methods and performs a comprehensive assessment. Then a practical meter placement strategy for PQ monitoring is adopted to implement the proposed fault tracking algorithm. In the study two time-domain simulation tools are used to simulate and analyze the transmission system. Actual measured field data of a 34S-kV transmission system is used to verify the usefulness of the proposed fault tracking algorithm.