Microgrid protection schemes are different from those used in conventional distribution networks. With the incorporation of distributed generation (DG), and the ability for bi-directional power flow and island operation; the fault current and delay parameters of protective relays need to be recalculated and updated in response to the dynamic operation of microgrid. Performance evaluation (e.g. fault clearance time and recovery time) and parameter estimation (fault current and trip delay) for such a protection scheme have been difficult because they require comprehensive modeling of electrical network, IED behaviors, and IEC61850-based communication. In this paper, we present a centralized scheme with detailed modeling and co-simulation of all these aspects. We also demonstrate how the analysis of the simulation results helps overcoming the forth-mentioned difficulties.