The invention discloses a system and method for recognizing a power cable fault based on fractal and wavelet transform. The system comprises a current detection circuit module, a signal modulation circuit module, a data collecting card and a master control computer which are connected in sequence, wherein the current detection circuit module comprises an A-phase hall current sensor, a B-phase hall current sensor and a C-phase hall current sensor, and the signal modulation circuit module comprises an A-phase I/V switching circuit module, a B-phase I/V switching circuit module, a C-phase I/V switching circuit module, an A-phase signal amplifying circuit module, a B-phase signal amplifying circuit module, a C-phase signal amplifying circuit module, an A-phase filter circuit module, a B-phase filter circuit module and a C-phase filter circuit module. The method comprises the following steps that signals are detected in real time and uploaded synchronously; the signals are collected and saved; the cable fault is recognized. The system and method for recognizing the power cable fault based on the fractal and the wavelet transform has the advantages of being novel and reasonable in design, high in detection precision, stability and reliability due to the fact that the hall current sensors are adopted to detect the cable current, capable of easily, rapidly, accurately and effectively recognizing the type of cable short fault by means of the combination of the fractal method and the wavelet transform method, strong in practicability, good in using effect and convenient to popularize and use.