ABSTRACT The efficient coordination of the distance and directional overcurrent relays (DOCRs) is jeopardized by the massive deployment of renewable distributed generation (DG) into electrical power networks. The two key aspects influencing the relay coordination are the bidirectional flow of current and increased short-circuit currents due to DG integration. This study investigates the consequences of variable DG penetration on the distance and dual-setting DOCRs (DS-DOCRs) coordination. As a result, common optimal relay settings have been obtained that can be utilized for variable DG penetration levels in modified IEEE-14 bus test system. For the distance relays (DRs), a fixed zone 1 and variable zone 2 operation have been considered. The proposed combined protection scheme is tested on a modified IEEE-14 bus test system using DS-DOCRs and DRs. The relay coordination problem is formulated as a constrained non-linear optimization problem and solved by genetic algorithm (GA) and gray wolf optimization (GWO). In this paper, DS-DOCRs with user-defined relay characteristics have demonstrated superior performance in line protection compared to conventional DOCRs with normal inverse (NI) characteristics. In addition, a comprehensive comparative analysis of optimization algorithms has been performed between GA and GWO algorithms.