An adaptive distance relaying system (1) provides improved performance for parallel circuit distance protection. The system utilizes the parallel circuit's current, when available, in conjunction with measurements of voltage and current on the protected line to compensate for the zero sequence current mutual coupling effect. The sequence current ratio (zero or negative sequence) is used to avoid incorrect compensation for relays on the healthy circuit. If the parallel circuit current is not available and the line operating status is, the best zero sequence current compensation factors are selected accordingly as a next level adaptation. If both the parallel circuit current and line operating status are unavailable, a fallback scheme that offers better results than classical distance protection schemes is employed.