The integration of distributed generation (DG) into the existing distribution networks minimizes active power losses and improves the voltage profile. The recent improvement in the development of DG technology has caused increase in the penetration of DG from different sources. The optimal location and sizing of DG is very challenging and introduces different protection issues. This is caused by penetration of current flow from different source which is contrary to the principles of operation of the conventional overcurrent scheme. This paper presents optimal method of DG placement and sizing using firefly algorithm and its impact of DG penetration on overcurrent protection scheme. Low voltage distribution network is modelled and simulated in PSCAD/EMTDC and DigSilent power factory software using IEEE 33 and Ayepe 34 standard bus. False tripping of feeders, Nuisance tripping, blinding of the protection scheme and unintentional islanding caused as result of Photovoltaic penetration into the distribution network were simulated. Coordination of overcurrent relays with and without DG penetration were analyzed and possible mitigation algorithm were proposed. The simulation result obtained showed that the proposed methods significantly improve the protection scheme coordination..