The modern power system and future ones include several intelligent devices. It also integrates renewable energy sources, energy storage, energy microgrid control system, hybrid networks, and smart grids with the wide application of information technology and communication. The most crucial goal in the smart grid application is improving safety reliability within the network. Recent studies have recommended the development of smart grid technology that enhances the reliability of electric power systems increases efficiency and improves the detection of faults for protection; this will reduce the duration of interruption of the number of customers affected by the outages. Moreover, smart grid technology decreases the power loss of energy usage and improves the efficiency of the system. And protection is one of the most important challenges facing smart grid deployment. In this chapter, protection for smart grids using differential relays is presented. The differential scheme is a very reliable method of ensuring the safety of protected areas. This chapter discusses the differential relay parameters with various fault conditions. Therefore, the protection scheme affirms the rapid separation of the fault zone to reduce damage to the equipment. The simulation results show that the method is effective and reliable.