In this paper, performance analysis of power system network is carried out by injecting the inter-turn fault at the power transformer. The injection of inter-turn fault generates the inrush current in the network. The power system network consists of transformer, current transformer, potential transformer, circuit breaker, isolator, resistance, inductance, loads, and generating source. The fault detection and termination related to inrush current has some drawbacks and limitations such as slow convergence rate, less stability and more distortion with the existing methods. These drawbacks motivate the researchers to overcome the drawbacks with new proposed methods using wavelet transformation with sample data control and fuzzy logic controller. The wavelet transformation is used to diagnose the fault type but contribute lesser for fault termination; due to that, sample data of different signals are collected at different frequencies. Further, the analysis of collected sample data is assessed by using Z-transformation and fuzzy logic controller for fault termination. The stability, total harmonic distortion and convergence rate of collected sample data among all three methods (wavelet transformation, Z-transformation and fuzzy logic controller) are compared for fault termination by using linear regression analysis. The complete performance of fault diagnosis along with fault termination has been analyzed on Simulink. It is observed that after fault injection at power transformer, fault recovers faster under fuzzy logic controller in comparison with Z-transformation followed by wavelet transformation due to higher stability, less total harmonic distortion and faster convergence.