This paper investigates the ability of impedance based fault locating systems in series compensated lines. Behaviour of Series capacitors and their built-in protection system has been studied to analyse the dynamics of the system during short circuit faults. This paper also aims at investigating attempt to provide a framework to facilitate a reliable decision making in the real time situation by amending conventional fault locating algorithms. The algorithm is simulated using MATLAB Simulink for a 220kV transmission line.