With the continuous increase in the grid-connected capacity of new energy sources, the penetration of power electronic devices in the power grid has significantly increased, posing a severe challenge to the effectiveness of existing relay protection schemes. To ensure the safe and stable operation of the power system, it is necessary to develop a set of protection setting schemes with optimal comprehensive performance based on the real-time operating state of the system. Addressing the current issues of relay protection, such as insufficient stability and low setting efficiency, this paper proposes a new energy grid-connected protection setting optimization method based on a multi-objective discrete gray wolf optimization algorithm. This method constructs a multi-objective optimization model with the goals of optimal sensitivity and minimum setting time, constrained by protection sensitivity, rapid response, and reliability in distributed power access scenarios, to obtain the optimal protection settings, thereby supporting the safe and stable operation of the power system. Experimental results show that the proposed method has faster convergence and higher optimization efficiency compared to traditional setting schemes and genetic algorithm-based setting schemes, making it effectively applicable in the field of power system relay protection.