Book excerpt: This paper presents a self-healing protection system designed using PSCAD software to test and investigate the efficiency of this method. The system was applied on a typical distribution system with loads, buses, and power sources. The availability of advanced and intelligent devices, such as IEDs and PMUs was the trigger to design proficient and accurate self-healing protection systems which are associated with future smart grids. Deploying optimal sensors distributed within the grid could be a suitable method to monitor and control the distribution network. By using a hierarchical clustering communication technique, optimal sensors can work wirelessly and efficiently without interruption during outages. Also, by using this intelligent and automated method in a smart grid, the duration of outages can be reduced by locating faults and limiting affected areas, which facilitates the fault clearing from the grid rapidly. Also, the proposed system of self-healing protection was simulated using PSCAD software to test the ability of the system to achieve our research goals. The system, as presented in the simulation results, worked smoothly, and successfully showed that the self-healing protection system could monitor and control the grid during outages to locate the fault, isolate the affected area and restore electricity to the unaffected area.