This paper introduces a new fault location algorithm(FLA) for three-terminal transmission lines using positive sequence components of currents and voltages available at all three terminals. The proposed fault location algorithm simultaneously able to identify the faulted section and hence estimates the location of the fault. For various fault types and fault resistance values, simulation tests have been carried using PSCAD for a 161kV power system network. And later the algorithm is implemented in MATLAB. The proposed algorithm is tested for estimation of the fault location for different fault types with various fault resistances. It can be observed from the results, that for 99% of the cases tested, the % error is less than 1%. © 2020 IEEE.