This paper presents and applies an inductive directional coupling technology based on spread spectrum time domain reflectometry (SSTDR) for non-intrusive power cable fault diagnosis. Different from existing capacitive coupling approaches with large signal attenuation, an inductive coupling approach with a capacitive trapper is proposed to restrict the detection signal from transmitting to power source and to eliminate the effect of the power source impedance mismatch. The development, analysis, and implementation of the proposed approach are discussed in detail. A series of simulations and experiments on cables with different fault modes are conducted, along with comparison of existing capacitive coupling, to verify and demonstrate the effectiveness of the proposed method.