Microgrids play a major role in enabling the widespread adoption of renewable distributed energy resources. However, as the power generated from renewable resources is intermittent in nature, it impacts the dynamics and stability of the microgrid, and hence their integration needs new approaches to coordination and control. The existing systems lack run-time adaptive behavior. To face these constraints, the electric energy system must adapt by integrating Information and Communication Technologies (ICT). Multiagent system (MAS) is emerging as an integrated solution approach to distributed computing, communication, and data integration needs for smart grid application. Distributed and heterogeneous information can be efficiently processed locally, but utilized globally to coordinate distributed knowledge networks, resulting in reduction of information processing time and network bandwidth. Parallel operations, asynchronous communication, and autonomous actions of agents enable MAS to adapt to dynamic changes of the environment, thereby improving the reliability, responsiveness, fault tolerance, and stability of the microgrid. In this chapter, MAS is implemented with Java Agent DEvelopment (JADE) framework for advanced energy management of a microgrid. Also, MAS is linked with Arduino microcontroller for practical verification of agent operations. Three microgrids are interconnected to form a microgrid testbed, and smart grid features such as demand side management and plug and play are implemented, making it into a smart microgrid.