Dampness is one of the most important factors leading to the degradation of the insulation performance of cable accessories; it may easily lead to interface defects of composite insulation. In this paper, an electromagnetic field defect model of the cable composite insulation interface is established, and the effects of the defect degree and the defect type on the magnetic flux and the harmonic current are studied. The results show that the magnetic field is uniformly distributed with a decreasing trend when the cable is in good condition, and the grounding current has no obvious harmonic component. For different defects, the magnetic field changes at the defect location are notably different; for water droplets and the water film, the magnetic field distortion is obvious at the location of the defect and sheath, and for water tree defects, the distortion of the magnetic field is significant. In addition, the degree of distortion caused by the same defect at different positions is also different, and the magnetic field contrast is not obvious at different degrees of moisture exposure. The distortion of the grounding current caused by the water tree is higher than that of the water droplet and the water film, and the characteristics of the harmonic components of the grounding current caused by different defects have obvious distinctions. The type of cable defect can be judged by the proportion of harmonic components. This work can be used as a reference for the assessment of the cable insulation defect status.