ABSTRACT In this work, a method of optimal relay coordination for improving system reliability has been presented in association with the Wind Energy Conversion System (WECS). The graphical method as well as changes in Plug Setting Multiplier (PSM) and Time Dial Setting (TDS) have been used to test the system’s reliability with the help of ETAP. Load flow analysis, short circuit testing under different fault conditions, reliability assessment, and relay coordination have been performed on the proposed WECS. In this research work, a test system with relay coordination is proposed that is used for transformer protection using over-current relays (OCR) and ground-fault relays (GFR) devices with a wind energy induction generator. It is shown that coordination is off when WECS is added to the system. Therefore, maximum values of the circuit breaker’s trip device setting, the relay’s pickup, and the time dial settings are desirable to increase the coordination. Further, it has been revealed that the comprehensive analysis of load flow analysis, short circuit analysis, and reliability assessment play vital roles in achieving suitable relay coordination. Also, the use of ETAP software in this analysis improves the accuracy and speed of the circuit breaker operation at a reduced cost.