This paper presents a novel algorithm of fault location for transmission line. Solving the network spectrum equations for different frequencies the fault can be located accurately by this algorithm with one terminal data of voltage and current, and the identified parameters, such as fault distance, fault resistance, and opposite terminal system resistance and inductance. The algorithm eliminates the influence of the opposite system impedance on the fault location accuracy, which causes the main error in traditional fault location methods using one terminal data. A method of calculating spectrum from sampled data is also proposed. EMTP simulations show the validity and higher accuracy of the fault location algorithm compared to the existing ones based on one terminal data.