IEC 61850 is rapidly becoming the internationally recognized standard for substation automation systems making it an indispensable element in power system protection and automation education. In order to facilitate teaching this very practical subject, a laboratory setup was developed to demonstrate IEC 61850 station bus inter Intelligent Electronic Device (IED) communication. In this setup, an electrical substation was implemented in a real time digital simulator (RTDS) and protection schemes were implemented in IEC 61850 station bus compliant IEDs from different vendors. Trip signals and breaker statuses were exchanged between RTDS and IEDs using GOOSE (Generic Object Oriented Substation Event) messages. Several protection applications including a novel backup bus protection scheme were developed based on the setup to demonstrate the use of GOOSE messages in time critical applications. The developed test setup along with the designed laboratory exercises will undoubtedly enhance teaching, training and research in this important field. / February 2016