Increasing penetration of converter-based generations in power system has led to new system challenges. Short circuit power response from converter-based generations is different from that of traditional synchronous generators. Power electronic converters can be designed for over-current only up to 1.1–1.25 times of its nominal value. Low availability of short circuit power can cause many challenges such as misoperation of distance relays. The aim of this paper is to investigate the effect of converter dominated systems on performance of distance relays. Backup functionality of the distance relay is major concern as miscoordination of backup relays in case of cascading faults can lead to severe stress in system, which can develop into blackout. In this paper, response of relays in traditional system is compared with response of relays in low short-circuit-current power systems. Impact of converter controls on fault current response of converter-based generations is also investigated.