This document presents an adaptive zone selection algorithm for distance protection of a transmission line with a midpoint connected STATCOM device. The algorithm aims to address challenges to distance protection posed by the presence of the STATCOM. It investigates the impact of the STATCOM on apparent impedance seen by distance relays under different fault conditions using EMTDC/PSCAD software. An adaptive setting is proposed that calculates a new reach based on system and STATCOM parameters to ensure proper operation of distance relays for both underreach and overreach scenarios. The performance of the proposed adaptive algorithm is evaluated through simulations of various single line to ground and three phase fault cases with different fault locations, resistances and system load angles.