Lightning stroke on a transmission tower structure is one of the major reasons that results in high voltages at the tower arms due to the excessive lightning current flowing through the transmission tower to earth. The Surge voltage seen at the tower cross arm on the first tower close to a substation is the worst case. If this voltage is higher than the withstand level of the insulator string, the insulation of substation equipment will be exposed to transient over-voltage called fast front back-flashover (FFBF). The peak of this transient overvoltage is affected by the value of the system’s earthing resistance. This paper studies the effect of reducing the grounding resistance of both the surge arrestor (SA) and the first transmission line tower adjacent to a 66 kV substation on FFBF. Three case studies using PSCAD/EMTDC software are presented to simulate the variation of the potential sire at the substation equipment with different resistance values for the first tower and SA earthing resistance. The paper also addresses the economic protection system for solving the problem of transient overvoltage. The study proves that the proper design of the first tower grounding system enhances the safety of the system and reduces the cost for the grounding system to the minimum.