On-Line overcurrent relays setting approach in distribution networks by implementing new adaptive protection algorithmAbstract-In order to meet the ever increasing demand for power, the government has revised its targets in increasing power generation. For this purpose, installation of new equipment or utilization of Distributed Generation (DG) has been employed. In addition to changes in topology of power grid, the amplitude of the short circuit currents also can be affected due to these developments. In this condition, fixed setting for the protective relays cannot respond correctly. In order to prevent any miscoordination or mal-operation, relays have to be adaptively coordinated for a new system configuration to achieve correct fault clearance operation. In this paper, a reliable protection scheme is achieved by implementing the proposed adaptive protection algorithm. As results show, proposed new settings for the relays avoid the risk of unnecessary blackout for distribution network consumers. In addition, sensitive and reliable protection scheme is achieved by implementing the proposed adaptive algorithm.1 978-1-4799-8055-0/15/$31.00 ©2015 IEEE