Based on the expected features of modern relays, such as adaptive and self-adjustment functions, this paper presents a model and time-domain simulation of a directional overcurrent relay (DOR) with adaptive pick-up current (Ip) provided by a fuzzy system, where the teleprotection scheme is incorporated as a performance enhancer. A comparison of the operation time of conventional relays optimally coordinated with the evolutionary particle swarm optimisation (EPSO) meta-heuristic algorithm, considering stability constraint, with the proposed adaptive method has been carried out. For the calculation of the critical stability time, the bisection and potential energy boundary surface (PEBS) methods were considered. The results of the comparison have shown the good performance of a fuzzy-based setting on the DOR with the reduction in the average operation time while ensuring the system operation in the stable region. The role of the teleprotection and the stability analysis are also shown with time-domain simulations using the Alternative Transients Program – The Electromagnetic Transients Program (ATP-EMTP).