The paper aims to propose a Central Coordination Relay (CCR) to provide a solution to islanding protection, which became one of the major issues as distributed generating resources penetrate into electrical distribution systems. The operating procedures of the relay are identified after defining islanded areas and fault areas. The relay is modeled and its response in a real based small-scale.system is tested using DigSilent PowerFactory. It is shown that the CCR can maximize the DG capacity usage and improve service continuity in any fault conditions. Copyright (C) 2010 Praise Worthy Prize S.r.l. - All rights reserved.