In this paper a new numerical algorithm for arcing faults detection and fault distance calculation will be presented. It provides the solution for both the symmetrical and the unsymmetrical faults. The algorithm is based on the line terminal voltages and currents processing. A simple square wave are voltage model is assumed to model the long are in free air in computer simulation and algorithm development. The frequency dependence of line parameters is taken into account. A series of computer simulated and laboratory tests have shown that the new algorithm can be utilized in transmission system practice.