To determine the effectiveness of the FCL for the proposed application, test systems are introduced, the effects of DG on the relay protection system are examined, and the effectiveness of FCL to mitigate these effects are determined.Radial power distribution systems, common in North America, typically use coordinated relay protection for fault protection. However, the rising interest in distributed generation (DG) poses a problem, as DG causes such systems to lose their radial nature, disrupting the coordinated relay protection.The use of a fault current limiter (FCL) is proposed to limit the effect of the DG on the coordinated relay protection scheme in a radial system during a fault. Additionally, this thesis shows that the FCL enhances the stability of and limits the transient stresses on the DG. Such a device is only recently more plausible with the ongoing developments of a new hybrid mechanical/electrical fault current limiter.