Considering both environmental and commercial aspects, mixed three‐terminal transmission lines are attractive. Mixed three‐terminal lines consist of two sections of the overhead line and one section of underground cable. In this work, a selective auto‐reclosing, fault location, and parameter estimation technique for mixed three‐terminal lines using synchronised data from all three terminals are proposed. The proposed method uses the pre and during‐fault data recorded at the three ends of the line. Using the recorded sampled data, pre‐fault and during‐fault phasors are estimated. Four functions are formulated from the pre‐fault equivalent network of the system. Additionally, three sets of four functions each are formulated after assuming the fault to be on each of the three sections. Subsequently, the faulted section, fault location, and three sets of line parameters are simultaneously calculated by solving each set of equations. Finally, the correct faulted section, location, and parameters are identified based on the characteristics of obtained line parameters and fault location. Furthermore, the identified faulted section information is applied to enable or block the auto‐reclosing function. The simulations and analysis are carried out using PSCAD/EMTDC and MATLAB scripts, respectively. The accuracy, capabilities, applications, and limitations are discussed for different fault scenarios.