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Using Distributed Generation (DG) is an interesting topic that has drawn attention of electrical engineers in recent years. The presence of these generation units in distribution systems, although has many advantages and benefits, has to be applied after performing detailed studies and investigations due to their complexities in operation, control and protection of network. Conventional electric distribution systems are radial in nature, and are supplied through a main source. These networks have a very simple protection system which is usually implemented using fuses, re-closers, and over-current relays. The injected currents of DGs to a distribution network lead to not having a radial network any more, and consequently cause the network faces an inefficient protection system that was formerly designed according to the existing philosophy behind the distribution network. A novel scheme for distribution system reconfiguration is presented. By implementing the scheme on distribution networks with DG, in addition to maintaining the protection coordination; optimizes DGs operation through autonomous mode and causes the system reliability to be decrease. The suggested method has been implemented on a sample distribution network using DIgSILENT Power Factory 13.2 and its results have been presented.