<p>Fault identification in a power system is crucial. In recent days, there have been multiple microgrids connected to the power system. And if many buses are connected, then there is a need for an increase in the phasor measurement unit. By using an optimization technique, the number of phasor measurement unit PMUs can be reduced by placing them optimally. In this paper, the fault detection algorithm is implemented using a reduced number of PMUs with the help of the particle swarm optimization (PSO) algorithm. The optimal locations of PMUs are identified using the PSO algorithm. Here, the reduction in the count of PMUs and the PMUs are designed in MATLAB as a model. This is done using the Simulink and dashboard block sets. The IEEE 9 and IEEE 30 test systems are used here for the analysis and tests. The IEEE 9 bus system is constructed in simulation and then the PMU is constructed using the data taken from the phasor measurement blocks. This data is used in the dashboard block set to represent the PMU-based fault detection system.</p>