A Static Synchronous Series Compensator incorporating energy storage device (SSSC-ES) at the DC bus enables the exchange of true power with the system in addition to line reactance compensation. This facilitates improved control of real and reactive power in a transmission system. However, the fourquadrant operation of SSSC presents additional problems for the accurate operation of conventional transmission line protection. In this paper, an in-depth analysis of the effect of emulated reactance and resistance by SSSC-ES installed at the center of a hybrid series compensated line on the performance of distance relay is carried out. An investigation is performed with all possible operating modes and control strategies of SSSC-ES, and the possibility of mal-operation of distance protection are explored. A novel adaptive setting based on constant reactance and constant resistance emulation control strategy of SSSC is proposed for quadrilateral distance relay to prevent the mal-operation. MATLAB / SIMULINK is used for the simulation study.