Optimal placement of in protection device in a microgrid (MG) using optimization algorithm. Power outages at the distribution location is higher than any other parts in the system. This power outage damaged the system with sensitive loads. Distributed generation (DG) and microgrid (MG) in distribution system can reduce the power outages and damages by supplying the multiple sensitive loads. In distribution networks and microgrid required protection devices. The placement of protective equipment can limit the scope of the fault. Addition of DGs in distribution netmodukleworks generates reverse power flow and increase fault levels. Here optimal location of placement of protective equipment by using genetic algorithm. Finally the location type and direction of location of relays are optimized with the above mentioned algorithm. The genetic algorithm is a method for solving both constrained and unconstrained optimization problems that is based on natural selection, the process that drives biological evolution. The genetic algorithm repeatedly modifies a population of individual solutions. At each step, the genetic algorithm selects individuals at random from the current population to be parents and uses them to produce the children for the next generation. Over successive generations, the population “evolves” toward an optimal solution. You can apply the genetic algorithm to solve a variety of optimization problems that are not well suited for standard optimization algorithms, including problems in which the objective function is discontinuous, nondifferentiable, stochastic, or highly nonlinear.