This paper describes an innovative integrated solution for monitoring and protection of the power supply system of electric traction. The development of electronics devices, new possibilities to communicate (wireless), and new sensors makes it possible to design, develop and implement new hardware–software structures in various fields such as energy systems, transportation infrastructure, etc. This contributes to increasing developments in the monitoring and protection of railway infrastructure. A monitoring and protection system that uses sensors and devices to acquire electrical parameters from railway infrastructure has been developed and applied for fault detection and protection of power supply systems from electric traction. The solution of monitoring and protection presented are composed of a hardware–software structure with Global System for Mobile Communications (GSM) communication for monitoring of power supply installations from the electric traction and a central remote system composed of a device with GSM communication and a server that will allow, among others things, accurate detection of the block section (SC), in which an electrical fault (short circuit) has occurred, determination of the circuit breakers electro-erosion from the railway installations and an indication of the opportune moment for maintenance activity, respectively, as well as knowledge of the technical condition of some equipment from the return circuit. The proposed and developed method for monitoring devices has been validated in the railway laboratory to confirm its capability to detect defects and was tested in the field. Experimental results in the field and appropriate data analysis are included in this article.