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Summary The performance of conventional distance protection schemes is adversely affected by the infeed and outfeed current, which causes distance relay to underreach or overreach. The objective of this paper is to analyse a typical conventional distance scheme and then present a novel method to address the problem of underreach or overreach. An adaptive protection scheme is proposed using radial basis function neural network (RBFNN), which automatically adjusts its relay operational settings based on acquisition of remote end infeed data from the remote substation using remote terminal units (RTUs) connected to the field instruments (current transformers [CTs] and voltage transformers [VTs]). Communication between the local and remote end substation RTUs is through fibre optic. The results of this new technique, using Alaoji (in Nigeria) 132‐kV subregional network, are presented based on NEPLAN and MATLAB software simulations, which show significant improvement.