The paper presents a fault area detection and classification algorithm in the phasor domain for double-circuit lines compensated by a generalized unified power flow controller (GUPFC). In the first step, by defining and using a voltage index, the algorithm determines the side of the GUPFC in which the fault has occurred. In the second step, by defining and employing a current index, the algorithm will be able to identify the circuit of the line on which the fault has happened. Finally, the fault is classified. In this step, the algorithm detects the faulty phase by analyzing the loci of three-phase active and reactive powers at the line terminal. The algorithm uses the current and voltage phasors of the line terminals measured by the phasor measurement units (PMUs) in one cycle before and during the fault. The GUPFC and the test system have been modeled in MATLAB/Simulink. The presented algorithm is tested and evaluated under different conditions including different fault types and fault resistances for all normal series and shunt fault types. The results obtained from simulations verify the accurate performance of the algorithm for various fault conditions