Microgrids comprise low voltage distribution systems with distributed energy resources (DER) and controllable loads which can operate connected to the medium voltage grid or islanded in a controlled and coordinated way . Microgrids are controlled units which report their current state to a central control unit called Central Protection Centre (CPC) thus increasing reliability of the system. This feature also increases the controllability, security and ease of power flow. By connecting load centers to a microgrid, uninterrupted power is supplied to households and industries with reduction in energy theft, interruptions and loss in energy. However the challenge lies in automating the entire process of monitoring, protection and control of all the grid parameters. This becomes more critical with inclusion of DERs as they are inconsistent sources of energy. In this paper the concepts of Internet of Things(IoT) is used to solve the issues of microgrid reconfiguration occurring due to faults, changing energy usage patterns and inclusion and removal of DERs. By using suitable processor based technology it is aimed to automate the process, reduce the cost and size of establishment and reduce the overall cost of energy to the supplier. © 2018 IEEE.