The power grid is fast transitioning to a cleaner and greener version, with increased renewable energy penetration. As much of the grid is changing, the behaviour is changing too, especially during faults. In order to widely adopt technologies such as microgrids, with high penetration of inverter based resources, there is a need to understand the fault characteristics and accordingly design the protection schemes. This paper discusses the fault characteristics in a three-phase unbalanced microgrid in the presence of different distributed energy resources, such as diesel generator, grid-following inverter and grid-forming inverter, and evaluates the usability of traditional protection schemes that are generally used in North American microgrids.