The agenda of this paper is to discuss about the significance and a detailed feasibility study of practical implementation of Smart Grid in Bangladesh. Smart grid refers to an electric power system that enhances grid reliability and efficiency by automatically responding to system disturbances. Power crisis is a major problem for a developing country like Bangladesh. Efficient transmission and distribution of electricity with essential energy resources is a fundamental requirement to provide citizens and economies. The paper analyzes the characteristics of Smart Grid and a comparative analysis with conventional grid system. It also discusses about the efficient transmission and distribution process which will integrate power system with renewable energy and information system.