This paper reviews the application of wavelet transform for identifying power quality issues in electrical systems, highlighting its advantages over traditional Fourier transforms for analyzing non-stationary signals. Wavelet methods are emphasized for detecting and mitigating power quality disturbances such as harmonics, voltage sags, and noise, facilitating improved power system analysis and signal denoising. The study concludes that wavelet-based techniques are promising for real-time monitoring and classification of power quality events.