A distributed busbar protection system using time-stamped data gathered from measurement devices in an electrical power system bus arrangement by respective intelligent electronic devices (IEDs). The IEDs may derive the timestamp information from a clock or other time source, which may be synchronized to a common time source and/or an absolute time. The time-stamped measurement data may be used by a protection device to monitor and/or protect the electrical power system. The protection device may include a real-time vector processor, which may time-align the time-stamped data, determine one or more bus differential protection zones, and implement a differential protection function within each of the protection zones. One or more protective control signals may be transmitted to the IEDs to trip the corresponding breakers and clear the bus fault.