Being one of the fastest-growing economies in the world, Bangladesh needs to upgrade its electrical network and aim to reduce dependency on fossil fuel-based energy. For the aging and ever-expanding power network, it is necessary to have a smart substation in order to provide reliable, affordable, and sustainable electrical power. As Bangladesh is looking to integrate Distributed Generation (DG) in the power system, it is high time to think about integrating a smart distribution substation into its power network. In this paper, an investigation of the current power generation structure of Bangladesh was conducted and is described. The major focus was given to the upgradation of the existing substation and distribution setup of Bangladesh by providing suitable architectures, technologies, and communication protocols. Detailed studies of Bangladesh’s prospects to incorporate the new technology and renewable energy into its power network are discussed. ETAP was used to simulate the prospective system to show the feasibility of the prospective smart distribution substation in Bangladesh’s power network.