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When a short-circuit fault occurs in a distribution network, speed and reactive power consumption of an induction generator (IG) increase dramatically, which may cause system transient stability problems. This paper proposes an improved steady-state equivalent circuit method to determine transient stability of a distribution system or a micro-grid with multiple IGs. Interaction between IGs and distribution network during a fault is investigated. The relationship between network parameters and speeds of IGs is derived using the steady-state equivalent circuits of IGs. The critical speed and critical fault clearing time (CCT) for maintaining system stability are determined using the proposed technique. The factors, which affect transient stability of a multi-IG distribution system, are investigated. The correctness of the proposed method is verified using dynamic simulation. [ABSTRACT FROM AUTHOR]