To determine an appropriate command in order to solve a problem throughout the power system operation, a comprehensive monitoring system must be in existence. Indeed, the operator must prioritize the monitoring of system at different levels to be capable of making a suitable decision. Like all of emerging problems concerned with the smart grid concept in the future power system, a need for continuous optimal reactive power dispatch (ORPD) forces the operator to monitor and control the gird, systematically. In this paper, a holonicbased framework for monitoring and control of the reactive power flow is presented. The holonic architecture has some interesting features by which objective functions of the ORPD could be optimized through a timely proposed strategy. At first, a holonic model is presented for all reactive power resources of the system. Then, some communication and calculation holon are considered, of which these holons have a transfer function application to monitor a related area according to the territory of their holon. Also, to decrease the number of corrective actions during the ORPD strategy, a priority list is defined for each medium voltage feeder holon. Deliberately, the Lagrangian relaxation algorithm is considered for each holon to optimize the reactive power flow locally. This method also is compatible with the proposed holonic-based reactive power framework. Finally, to assess the efficiency of the proposed framework, the suggested method is compared with previous reactive power control methods in a case study.