In this paper present Autonomous Adaptive Digital Over Current Relay for distribution networks which acts autonomous setting using the short circuit impedance measured by relay of power systems. Automation of relay setting is one of the basic requirements for distribution automation, although manual relay setting is used at present. The short circuit impedance from a power source in distribution networks essential for the Autonomous Relay Setting changes frequently in distribution networks. In this paper the short circuit impedance is calculated with voltage and current measured in real time operation of digital relay using the Recursive Least Squares. A new method of digital relay setting is introduced using the the short circuit impedance and load current.