Owing to difficulties of constructing the distribution system in underground style completely, the distribution lines of a lot of areas still adopts the overhead circuits which is threatened by the lightning strucks. To prevent these damages, Taiwan Power Company (TPC) sets up methods which using arresters, overhead ground line.., etc to protect the system and equipments. Also, to improve the reliability and stability of power supplied . In this thesis, protection applications of the distribution system employing 9kV-grade arresters are analyzed. The standards of ratings, insulation level, surge tests and energy capacity are introduced first. Then benefits of different locations for the arresters installed are compared. In the meanwhile, the distribution structure comprising overhead line and underground cables is analyzed. The influence of installed positions of the arresters on the cables are researched. The software package “Alternative Transient Program (ATP)” is employed for simulation purposes. The simulations mainly research the effects of lightning surge, switching surge and transient over-voltage on the system and arresters. This thesis aims to verify and improve the protection design using arresters for distribution system.