An analysis is made of the GOOSE technology on the IEC 61850 standard, the hardware structure and software logic of the protection device based on the requirements on reliability and rapidity of protective relaying, the operation and maintenance, and the engineering design. This paper mainly studies and resolves such critical problems regarding the application of GOOSE technology of protective relaying as the structure of network in a digitalized substation, the application of the intelligent breaker and switch, the manipulation of GOOSE messages, isolated measurement for IED operation and maintenance, and the configuration and project design method. The scheme for the application of GOOSE technology to protective relaying has been effectively implemented in a certain project.