Considerable attention is given towards developing Superconducting fault current limiter (SFCL) due to increasing short circuit levels in transmission lines, which itself imposes further changes on the measured impendence at the relaying point and causes significant impact on the lines’ relay protection, especially on the distance protection as the single-phase grounding fault occurs. In this paper, resistive superconducting fault current limiter connected to the grid is studied as the model to analysis how SFCL affects the grounded short-circuit impedance relay’s setting, then an new setting method of distance protection for the SFCL-equipped line is proposed. Finally, a power system model is built to analysis the theory by PSCAD / EMTDC simulation software. The results show that in the condition of using the impedance relays’ new setting method, impedance measurement error is greatly reduced, SFCL and line distance protection can work in coordination with each other properly.