Abstract—A smart grid offers safe, reliable, and useful electricity. Phasor measuring units, smart meters, and other monitoring and measurement devices in the smart grid keep track of statuses at every grid level. As a result, utilities, control centers, and customers must exchange and retain an enormous amount of data in real time. As a result, data storage and communication require efficient data compression. To accurately reflect status of the system and regenerate nearly flawlessly on receiving side, compression should preserve all of the data’s critical information. This work uses the discrete wavelet transform to recover compressed voltage sag signals. With reduced data, the disruptions can be communicated more quickly. Because the proposed system uses lesser filters and few decomposition layers, it is simpler than the previous design. The results of the simulation demonstrate improvement in the reconstruction error and compression ratio by minimizing their values. This design is time-saving and simple to use.