A method of symmetrical component analysis for the detection of current-transformer (CT) saturation in a numerical current differential feeder protection relay is presented in this paper. The performance of the differential relay is investigated for various faults on a typical Electro-Magnetic Transients Program/Alternative Transients Program (EMTP/ ATP) simulated transmission feeder. The simulator includes the effects of CT saturation. A comparison between simulation and tests conducted on an analog model testbench are also evaluated. The results show a high degree of similarity and illustrate the effect that CT saturation imposes on the sensitivity and stability of the protection scheme. An algorithm is presented that shows significant improvement in sensitivity on internal faults while still maintaining a high level of stability on external faults and nonfault events. © 2006 IEEE.