This study aims at proposing an original single‐end protection scheme for the compensated transmission line using traveling waves and game theory. To this end, this paper initially investigates the effects of static synchronous compensator (STATCOM) on traveling waves passing through STATCOM installation point. Furthermore, based on the traveling wave theory, it evaluates the impacts of STATCOM's harmonic on conventional protections. A single‐end method will be proposed in the next stage for fault protection on the compensated transmission lines with STATCOM. The extracted traveling waves in this study will be discriminated using the game theory, and discrete wavelet transform will be utilized to process the signals and assess the sensitivity of the proposed scheme considering the extraction techniques of the traveling wave. According to the obtained results, the proposed protection scheme is a reliable and accurate method for all possible faults type on compensated transmission lines at the various locations of the line and with different fault inception angles.