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This paper describes the design and test results of a Kalman filtering based digital distance protection scheme. A brief review of voltage and current Kalman filters is followed by sensitivity analysis due to incorrect model parameters. The complete scheme for fault detection, classification, zone computation, and fault location calculation is tested for all types of faults at different locations using simulated data. The major parts of the scheme were tested using the available recorded data. The test results indicated that the proposed scheme has a mean operating time of a quarter of a cycle, insensitive to incorrect model parameters, and represents a low computer burden.