Intelligent Electronic Devices (IEDs) serve as the foundation of substation automation system. Many testing cases have discussed the performance of implementing IEC 61850 in IEDs manufactured by different vendors. However, the procedures of configuring an IED and mapping it with the power network model are not summarized. This project aims to provide the configuring procedures of a distance relay using IEC 61850 protocols, and test if the relay can correctly operate a circuit breaker modelled in Real Time Digital Simulator (RTDS). The communication between relay and circuit breaker is realized by GOOSE, SV and MMS services embedded in the GTNET card. Two testing cases are performed to illustrate that the closed-loop testing using IEC61850-configured relay is feasible in RTDS environment. The thesis is developed as guidelines for future lab work and teaching materials.