Dynamic analysis of a transmission line which is compensated by a FACTS device such as STATCOM, SSSC and UPFC is carried out in this paper and the impacts on conventional line protection methods such as the DCPM (Differential Current Protection Method) and the DPM (Distance Protection Method) are reviewed. A refined DCRM is proposed to detect faults properly regardless of the FACTS operation. The proposed method is applied to a FACTS-compensated line with a variety of faults and is verified by simulation results. An adaptive DPM on a FACTS-compensated line was proposed previously in the literature. In order to emphasize the necessity of the modified DPM, the conventional DPM is applied to a FACTS-compensated system. Significant factors such as fault types, fault locations, and fault resistances as well as FACTS device types are considered for relaying setting.