Insulated conductors can improve the stability of power transmission and reduce the construction space compared with traditional bare conductors. Therefore, insulated conductors are used more and more in overhead power transmission. However, a major challenge of using insulated overhead conductors (IOC) is that the ordinary protection devices are not able to detect the phase-to-ground faults and something, such as tree branch, hitting conductor events. This may cause an accident such as power failure or electrical fire and result in serious damage. In this paper, a new approach, which is based on Discrete Wavelet Transform (DWT) and Long Short Term Memory network (LSTM) for detecting of IOC fault according to partial discharge, is presented. Firstly, the original signal is denoised by DWT. Secondly, the denoised signal is decomposed and extracted features on different layers by DWT. Finally, IOC fault is detected by LSTM. This method can improve the detection accuracy of IOC fault which is tested on the ENET public data set and compared with other classification methods. INDEX TERMS Insulated overhead conductors, partial discharge, discrete wavelet transform, long short term memory network, fault detection.