As the revolutionary change in electric power industry begins with the latest communication infrastructure, it is on the verge of a revolutionary transformation to develop a smart grid to meet the requirements of our digital society. Wide Area Power System is made up of plentiful automated transmission and distribution systems with strong communication infrastructure, all operating in a coordinated, proficient and reliable mode. This paper is fretful with the wide area power system load protection scheme and ensuing design requirement that enhances stability as well as control. It discusses the architecture that upgrades the existing scheme by controlling all the control signals traffic between generating units, server, connected loads, and protection devices using WIMAX. The main theme of the paper is on the use of information technology to obtain more flexibility and smartness in the Wide Area Power System Load Protection by designing the Communication channel using WIMAX. Faults detected in Local area networks and Information regarding the faults of Local Areas is communicated to Load Area Manager (LAM) which takes required control action to handle it. Finally the paper shows islanding operation through WAM for the areas that becomes intensive faulty. Results have been verified in MATLAB/ SIMULIMK.