Transformer is an essential part of power system which is a vital link between generating station and the utilities. The failure of the transformer results into huge loss of revenue. If the cause of the failure is detected at early stage then the transformer can be saved from complete outage which also increases the reliability of the supply. So it is required to detect the internal short circuit faults which may turn into the permanent fault of transformer. In this paper, the attempt has been done to analyze the internal short circuit fault and its effect on the different parameters of transformer like flux distribution and temperature rise. The single phase transformer is modeled using finite element analysis (FEA) which is one of the numerical methods available. The application of finite element method is useful when the geometry is very complicated. It was observed that the turn to earth fault affect the redial forces and turn to turn fault affect the axial forces on the windings. Keywords: Transformer, short circuit analysis, finite element method (FEM), thermal analysis