This research addresses two topics: the first is the optimal coordination of overcurrent relays (OCRs), which has recently become a major challenge to ensure reliability and speed of relays’ operation, and the second is a modified circuit added to the OCR to vanquish the barriers caused by the ever-increasing participation of distributed energy resources (DERs), at a lower cost. For robust and reliable OCRs coordination, various types of optimization techniques are frequently used to find optimal OCRs settings in distribution networks (DNs). In this study, the improved wild horse optimization (IWHO) algorithm is used as a novel metaheuristic method for solving optimization issues in coordination of OCRs in a distribution network, for the first time. This technique is used to determine the optimal time multiplier setting (TMS) and optimal pickup setting (PS) of OCRs in order to minimize the overall operating time. The results of the proposed algorithm are compared with those obtained from other recent metaheuristic techniques. The obtained TMS and PS settings of each relay show the effectiveness of the proposed IWHO technique in terms of accuracy and speed in a medium scale radial network configuration. To replace the costly mitigation methods employed in the DN comprising DER, a simple circuit was proposed to be added to the OCR. Using the angle’s sign of positive sequence current component (PSCC) of fault current solely, this proposed circuit can detect the fault direction and assist the OCR in making the correct decision in fault detection and clearing with high penetration of DERs. IEEE-33 bus electrical power system has been used to validate the newly proposed protective solutions.