In order to analyze the operation of the protection system during induced fault testing in the Croatian power system, a simulation using the CAPE software has been performed. The CAPE software (Computer-Aided Protection Engineering) is expert software intended primarily for relay protection engineers, which calculates current and voltage values during faults in the power system, so that relay protection devices can be properly set up. Once the accuracy of the simulation model had been confirmed, a series of simulations were performed in order to obtain the optimal fault location to test the protection system. The simulation results were used to specify the test sequence definitions for the end-to-end relay testing using advanced testing equipment with GPS synchronization for secondary injection in protection schemes based on communication. The objective of the end-to-end testing was to perform field validation of the protection settings, including verification of the circuit breaker operation, telecommunication channel time and the effectiveness of the relay algorithms. Once the end-to-end secondary injection testing had been completed, the induced fault testing was performed with three-end lines loaded and in service. This paper describes and analyses the test procedure, consisting of CAPE simulations, end-to-end test with advanced secondary equipment and staged-fault test of a three-end power line in the Croatian transmission system.