In order to improve the practice in operation and maintenance of high voltage (HV) cable circuit and localize short circuit fault accurately and in a timely manner, this paper proposes a fault localization method based on the monitoring of sheath current in cross-bonded HV cable circuits. The fault current flow can be identified by analyzing the fundamental component of sheath current, which can be obtained by Fast Fourier Transform (FFT) of the monitored sheath current. The cable section where a fault occurs can be localized as both ends of the cable section current would flow in opposite direction. The sheath current signals in different fault location within different sections have been simulated with a selected high voltage cable circuit and under typical operational mode. A set of fault localization criteria have been proposed. Results indicate that the proposed method is feasible and effective in localization of HV cable short circuit faults.