The inherent intermittency of renewable power generation poses one of the great challenges to the future smart grid.With incentives and subsidies, the penetration level of small-scale renewable energy into power grids is sharply increasing worldwide. Battery energy storage systems (BESS) are used to curtail the extra power during low demand times. These energy storage systems are capable of absorbing and delivering real power to the grid. The increased penetration level of inverter-based distributed generation (DG) reduces the inertia of the grid and thus affects the transient stability of the network. This paper discusses and investigates the impact of BESS on distribution networks’ stability with high penetration levels of inverter based DG. The obtained results show that proper charging and discharging schemes of the BESS can enhance the transient stability of the network. Fast switching between charging and discharging mode would be helpful during transient fault disturbance to keep the system in a balanced condition.