Microgrid is an aggregate of generating units and loads at the distribution level. It operates in two modes: grid connected mode and Islanded mode. Fault clearance in a microgrid is a key challenge for protection engineers. This paper aims to identify the optimized values of time of operation of overcurrent relays in a microgrid network. This paper solves the optimization problem using two methods —Interior Point method and Active Set method. Also three types of relays are used to determine which relay works best in similar constraint environment. These methods aid in providing suitable relay coordination in microgrid and clear the faulty portion of network quickly from the healthy portion of network. © Springer Nature Singapore Pte Ltd. 2017.