In this paper, a novel method for optimizing and coordinating directional overcurrent relays in active distribution networks considering thermal equivalent short-circuit current is proposed. A modified genetic algorithm is used as a tool in order to simultaneously minimize the operating times of the primary relays and maximize the time delay between the operation of backup relays and their respective protected elements’ thermal stress curves. In other words, the objective function to be minimized is defined as the sum of the operating times of all primary relays and the reciprocal sum of the thermal violation check. The latter part is necessary because a protection engineer needs to be sure that the operation of a backup relay is as far as possible from the thermal stress curve of the protected element. Needless to say, for every solution, the algorithm ensures the proper coordination between primary and backup relay pairs throughout the network. The simulation is carried out for a closed loop medium voltage distribution network and the results are presented to demonstrate the effectiveness of the proposed approach. The main benefit of this optimization process is that it indicates whether the existing protection system can operate safely below the thermal stress curves of the protected elements’ or whether additional measures are required.