With the development of economic and technology, global resources crisis and environment issues have become increasingly prominent, all of these lead new challenges to the electric power grid. In the development of future power grid, Smart Grid (SG) represents a new direction of future development. Smart Distribution Grid (SDG) is an important breakthrough in SG as the last part of the power system to the user. Firstly, this paper gives the definition of SDG. Then it introduces the key technologies according to the requirement of SDG. Finally, it is concluded that SDG is the inevitable result of the development.