To supply reliable and stable electrical power to the customer the electrical equipment that facilitates the power flow starting from the generation station until it reaches to the customer needs to be protected with a proper protection device. Transmission line is one of the equipiment links the generation station to the distribution system so needs to a proper protection. Therefore, distance relay protection is a widely used protection device for long transmission line. Such that, to make the distance relay operate properly interms of selectivity it should coordinate and arrange accurately on a protected transmission line. if the distance relay is not coordinate properly as a result to become underreach. In this thesis, an in-depth study of improvements in transmission line distance relay protection on a 230 kV transmission line between Bahir Dar II to Almata substation is conducted to improve operation of distance relay to become selective and indicate the exact fault location for the meaintenance team. To arrange and coordinate the distance relay to improve its operation for the selected case study, line-in-line-out (LILO) method and three zonal distance protection scheme (DPS) are used. For simulation purpose power system computer-aided design (PSCAD) software is used. The findings lead the researcher to recommend inserting a new substation between two already existing substation consider the impedance value at the taping points. However, when proper arrengements and coordination of the distance relay on a transmission line helps to improved the operation of the distance relay. Such that, the distance relay indicate the exact fault location and to become selective. Keywords: Distance relay, Fault impedance, Transmission line, Bahir Dar II to Alamta substation, Coordination of distance relay, PSCAD software.