Abstract: Microgrids are local distribution level networks which operate in either grid connected mode or islanded mode. It is a flexible system which supports the integration of renewable power sources such as solar, wind, etc. Reconfiguration of the microgrid occurs frequently. Due to the bidirectional power flow, traditional protection methods are not applicable to microgrids. This study discusses the use of Hybrid-Dijkstra’s algorithm which finds out the shortest path from a faulted point to the nearest operating source which may lead to minimum user disconnection. The proposed algorithm is tested and validated on a standard 43-bus microgrid network and an IEEE 7-bus distribution network.