Recently, future smart grids are described by a dominantly fluctuating character due to the power consumption change from peak to off-peak loading conditions, the operation of micro-grids in grid-connected or islanded mode and other possible network topologies resulting in an effective change in network impedances and short circuit current level. Therefore, the situation from protection sensitivity, selectivity and speed may become more and more challenging. In this paper, Adaptive protection scheme is proposed to respond to structural variations occurred in interconnected power systems. A designed software based on Modified Particle Swarm Optimization (MPSO) algorithm is suggested to solve the relay coordination problem in modern distribution networks. In this study, the 14 IEEE bus system is tested via three power system scenarios showing the effect of adding and disconnecting of DG units and the occurrence of sudden line outages on the system. The obtained results show that the proposed algorithm has achieved optimum relay settings for each existing network topology.