A method for detecting an arc event occurring in an electrical system includes sensing a voltage using a voltage sensing device coupled to a component of the electrical system, producing a signal waveform representative of the sensed voltage using the voltage sensing device, and sampling at a predetermined frequency the voltage signal waveform to generate a plurality of sample waveforms. The method further includes applying a wavelet transform to each sample waveform to decompose them into a predetermined number of detailed waveforms using a corresponding number of successive wavelet components, dividing each detailed waveform into a plurality of segments, analyzing the plurality of segments to detect a change in one or more of the properties of the corresponding detailed waveform, and determining an occurrence of the arc event based on the duration of the detected change of one or more of characteristics of the corresponding detailed waveform.