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• Importance and challenges of relay coordination in Microgrid. • Overview of different adaptive schemes opted for relay coordination. • Different optimization techniques which have been used for the calculation of relay settings. • Evolvement of algorithms from conventional to Hybrid methods which combines two different metaheuristic methods to solve a complex, non- linear optimization problem in an efficient way for optimized relay coordination. • Future directions of research for further modifications possible in Algorithms are stated at the end. Concept of microgrids (MGs) have gained significant attention in order to enhance the resilience and efficiency of modern Power Systems. MG offers bi-directional power flow so an effective protection and control becomes a vital requirement to ensure the reliable operation of MGs. Relay coordination being an integral part of the protection system, plays a critical role in prevention of power disturbances and equipment damage due to the presence of bi-directional power flow. This review paper focuses on the optimization of relay coordination in MGs, and highlights the importance of adaptive and intelligent approaches involved for the efficacy of MG operation. This paper overviews different schemes used to adapt while determining the DOCRs settings with different contingencies considered. The paper depicts the key challenges associated with relay coordination in MGs; varying fault currents, and bidirectional power flows. To overcome these challenges, recent researches have explored advanced techniques that includes intelligent algorithms to operate on collected real-time data. Additionally, the impact of communication technologies for relay coordination in real-time has been discussed for Grid connected and Islanded mode of operation. This review covers a wide range of optimization methods such as; Traditional, Meta-Heuristic, and Hybrid algorithms, which allows adaptive and reliable protection schemes during different modes of MG operations. [ABSTRACT FROM AUTHOR]