The requirement is that the protection relay provides early warning for the protected device in order to guarantee the system reliability and high system security after fault is cleared. The development of new protection functions for smart grid is introduced in this paper. The principles and techniques of integrated state monitoring and main protection techniques for transformers are presented. The principles and techniques of transmission cross section protection which has developed from the line overload protection technique is also presented to show its application to avoid cascading overload tripping. Finally an islanding control system is presented. In the control system the islanding center is responsible for the co-ordination, and optimization and out-of-step relays are responsible for complimentary action. The aim of islanding control is that load-generation imbalance in each island is minimized and generators in each island are not out of step any more.