Battery energy storage systems (BESSs) are being presented as a prominent solution to the various imminent issues associated with the integration of variable renewable energy sources in the distribution system. Performance of grid‐connected BESS depends on the type of application (power and energy), grid operating parameters and level of interconnection point, which shows the necessity of benefit assessment of BESS technology and its applications in terms of economic and grid operations before investment at a larger scale. In this study, real‐time analysis and evaluation of two different battery technologies connected in a medium voltage (MV) distribution system are carried out. The main objective of this paper is focused on the impact analysis of large‐scale BESS on MV distribution feeder. A real case of installation of lithium‐ion and advanced lead‐acid battery systems into the Indian distribution system has been considered for this study. Different operational strategies of BESS such as frequency regulation and energy time‐shift have been performed with real‐time data. The effectiveness in usage of BESS with these functionalities has been verified in terms of peak shaving, improvement in voltage profile and reduction in power losses in the feeder.