The short-crcut capacity design of a transformer is one of the most significant and challenging criteria. Electromagnetic forces in transformer winding regions are produced by interaction between the leakage flux and current density. Under short circuit condition when currents increase to 20 times, windings are exposed to very high electromagnetic force. This paper is focused on the reduction of leakage flux and electromagnetic force under fault condition of distribution transformer. This article is composed of two parts. First, Finite Element Methods (FEM) that improved in Ansoft-Maxwell has been used to investigate the leakage flux and electromagnetic forces of three-phase, three leg, 10/0.4-kV, 1000-kVA distribution transformer. Then, to optimal design of transformer under single phase to ground short circuit condition two auxiliary winding was chosen as an active shielding to reduce the radial and axial leakage flux. According to Lenz's law this windings produce a magnetic flux that is the apposite of the leakage flux from an iron-core system. Results indicate that the proposed auxiliary winding remarkably decreased the leakage flux and electromagnetic force in the winding regions. It should be noted that the resultant of main flux is not affected by auxiliary winding. Copyright (c) 2015 John Wiley & Sons, Ltd.