The HVDC transmission system is winning hearts of researchers and electrical engineers because of its notable merits as compared to the HVAC transmission system in the case of long-distance bulk power transmission. The HVDC transmission system is known for its low losses, effective control ability, efficiency and reliability. However, because of the sudden build-up of fault current in the HVDC transmission system, conventional relays and circuit breakers are required to be modified. Detection of fault location is an important parameter of protection of the HVDC transmission system. In this research paper, fault location methods based on traveling waves are reviewed for the HVDC transmission system. Arrival time and natural frequency are the two parameters of measurement in traveling waves. Advantages and disadvantages of methods of traveling waves with respect to their quantities of measurements are analyzed critically. Further, a two-terminal HVDC test grid is simulated over Matlab/Simulink. Different types of AC and DC faults and at different locations are analyzed on a test grid. A traveling wave-based technique of fault estimation is developed and is evaluated for identification, classification and finding location of faults to validate its performance. Moreover, this technique is supported with analysis of fast Fourier transform to accelerate its practicality and realization.