The article discusses about Directional Overcurrent Relays (DOCRs) coordination for the distribution system with DGs integrated. Disparate DOCR characteristic is utilized to mitigate the protection issue in all mode of grid operation. The fault current level in the system varies with the change in network condition. Consequently, conventional protection scheme fails to operate and hence optimal relay coordination of (DOCR) arises. In this manuscript, the impact of utilizing different DOCR characteristics has been investigated for mitigating this problem. Extensive research studies have been conducted for estimating the impact of change in operating mode of microgrid on protection coordination. In this work initially the microgrid was designed with 6 bus distribution system. Consequently, the impact on total relay operating time and Coordination Time Interval (CTI) for different relay characteristic has been observed for Grid-connected as well as Islanded modes of Microgrid operation. Subsequently, the key parameters are calculated in terms of CTI, operating time, TMS, PS etc. Further, percentage reduction in the sum of operating time of all the relays with mix curves is obtained to be 22.41 % for grid connected mode and 9.79% for islanded mode with NI characteristic.