Distance relays due to their selectivity and operating speed are used in HV/EHV line protection. The dynamic nature of Mho characteristic, which happens to be most primitive technique in line protection implemented with distance relaying, is built by using the measurement of local voltage and current signals. These signals have been influenced substantially by fault resistance and the source impedance feeding the line. In case of different generation sources, the source impedance and fault characteristic also change accordingly. Environmental benefit of wind turbine technology is making it a potential source of energy. These wind turbine-generating units (WTGU) use rugged induction/synchronous machines along with power electronics converters as controlling equipment. This gives a new challenge to distance relays, as the fault current contribution of these sources depends on the converter operational principle. In this thesis a typical wind farm of Indian systems are modeled in an IN-HOUSE tool developed as part of fault analysis on wind farm system. Directly connected and front-end converter based wind turbines with their interconnections are modeled in this simulation tool. Fault voltage and current waveforms are obtained for all types of wind turbine-generating units with both radial and LILO (Loop in Loop out) connection. PSCAD based modeling has been done for DFIG type of wind turbines. The fault waveforms are generated to evaluate relay performance. Five case studies having both Radial and Loop in Loop out (LILO) connection of wind farms are simulated. These case studies generate approximately 20000 cases, which are analyzed for distance relay performance studies. In addition, the analysis is further verified on relay hardware having three characteristics, namely Self Polarized Mho (SPM), Quadrature Polarized Mho (QPM) and Quadrilateral (QUAD) characteristics. The detailed studies are carried out in this thesis to ensure and suggest the system operators with appropriate relay characteristics to be used for transmission line protection in the case of wind farms interconnected to Grid. Based on the studies carried out in the thesis, LILO connection has no impact on distance relay characteristic. In radially connected wind farms, grid side relay will operate reliably for all types of faults. It has been recommended in the thesis that wind farm side distance relay characteristics should be adjusted based on the types of wind turbines (Type-1, Type-2, Type-3 and Type-4). Based on the investigations carried out in the thesis, voltage based phase selector has been recommended for Type-4 WTGU based wind farms.