With the exponential growth of science, Internet of Things (IoT) innovation, and expanding significance in renewable energy, Smart Grid has become an advanced innovative thought universally as a solution for the power demand increase around the world. The smart grid is the most practical trend of effective transmission of present-day power assets. The paper aims to survey the present literature concerning predictive maintenance and different types of faults that could be detected within the smart grid. Four databases (Scopus, ScienceDirect, IEEE Xplore, and Web of Science) were searched between 2012 and 2020. Sixty-five (n = 65) were chosen based on specified exclusion and inclusion criteria. Fifty-seven percent (n = 37/65) of the studies analyzed the issues from predictive maintenance perspectives, while about 18% (n = 12/65) focused on factors-related review studies on the smart grid and about 15% (n = 10/65) focused on factors related to the experimental study. The remaining 9% (n = 6/65) concentrated on fields related to the challenges and benefits of the study. The significance of predictive maintenance has been developing over time in connection with Industry 4.0 revolution. The paper’s fundamental commitment is the outline and overview of faults in the smart grid such as fault location and detection. Therefore, advanced methods of applying Artificial Intelligence (AI) techniques can enhance and improve the reliability and resilience of smart grid systems. For future direction, we aim to supply a deep understanding of Smart meters to detect or monitor faults in the smart grid as it is the primary IoT sensor in an AMI.