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In this paper, a novel approach is presented to study the impact of distributed-generation penetration on recloser-fuse coordination. The main core of this approach is based on an assessment process using a classification technique to classify the recloser-fuse coordination status at fault conditions to either coordination holds or coordination lost. Accordingly, the distribution system operator can take the proper decision. Then, two complementary actions are recommended in the proposed approach as a solution to decrease the number of cases where coordination is lost. The first one is to search for the best DG locations, where such locations are characterized by the minimum number of cases classified as coordination lost. The second one is based on changing the recloser setting in such a way to minimize the cases where coordination is lost. This new approach has been implemented on the IEEE 37-node test feeder using MATLAB-based developed software and the obtained results are presented and discussed.