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Abstract Transformer Differential and overcurrent schemes are traditionally used as main and backup protection respectively. The differential protection relay (SEL487E) has dedicated harmonic restraint function which blocks the relay tripping during the transformer magnetizing inrush conditions. However, the backup overcurrent relay (SEL751A) applied to the transformer protection does not have harmonic restraint element and trip the overcurrent relay during the inrush conditions. Therefore, major contribution of this research work is the developed harmonic blocking scheme for transformer which uses element (87HB) of the transformer differential relay (SEL487E) to send an IEC61850 GOOSE-based harmonic blocking signal to the backup overcurrent relay (SEL751A) to inhibit from tripping during the transformer magnetizing inrush current conditions. The simulation results proved that IEC61850 standard-based protection scheme is faster than the hardwired signals. Therefore, the speed and reliability of the transformer scheme are improved using the IEC61850 standard-based GOOSE applications.