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This paper describes modeling and simulation software developed specifically for teaching protective relaying application and design concepts. The emphasis was on implementing user-friendly and open-system solution that will allow an easy use and straight-forward future expansion. This is achieved by introducing new libraries of signal sources and relay elements developed for the SIMULINK environment of MATLAB. Combined with the power block set (PBS) toolbox of MATLAB, the mentioned libraries allow for a variety of studies aimed at better understanding protective relay design approaches, and related applications.