Electrical network components catastrophically fail as a result of aberrant system oscillations. Also, consequently leads to saturation in the ferromagnetic core elements. These factors induce distortions in the voltage and current waveforms as well as a large rise in voltage or current. This paper presents the role of distributed generation (DG) in contributing to ferroresonance investigation reduction in the distribution sector. A high ohmic reactor-shunt limiter (HOR-SL) is introduced as a novel technique based on a negative sequence component to mitigate ferroresonance. The proposed HOR-SL reduces the ferroresonance in distribution system (DS) by no more than 10.5 msec. A PSCAD/EMTDC software is used to model the ferroresonance phenomenon. The simulation results strongly show the effectiveness of using the proposed HOR-SL for limiting ferroresonant oscillations and creating stable orbit in the distribution sector. Case studies verified the effectiveness of the proposed technique in mitigating ferroresonance oscillations and keeping the security of the distribution zone.