Power transformers are to be monitored frequently to avoid catastrophic failures which are more or less related to internal faults for which many techniques and tools are developed, somehow many of these techniques rely on experts analysis and are well effected by environmental conditions which leads to misdiagnosing of the unit. In this paper a new fuzzy logic algorithm (FLA) based technique is developed which gives the vulnerability status of internal faults by considering thermal, electrical

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... and mechanical conditions prevailing in the transformer and integrating them. This system takes a set of test results of dissolved gas analysis, break down voltage, and sweep frequency response analysis so that aliasing effects and misdiagnosing can be reduced at a glance. It also facilitates to give current prevailing condition of Paper thermal, Oil thermal, Partial discharge, Electrical arching, oil break down voltage, and mechanical deformations related with core and windings individually so that corresponding remedies can be taken by the technologists. This system consists of 10 fuzzy logic controllers and is connected by considering technical conditions and reasons, the rule bases of these controllers were developed by considering various standards and experience of TIFAC CORE in NIT-Hamirpur. This fuzzy logic based system is tested and found that it is highly precise in classifying the critical statues of any transformer, reducing misdiagnosing and aliasing effects and identifying the current prevailing conditions.