This paper proposes a solution for automatic service restoration along with automatic fault location and isolation of the faulty sections in feeder in a power distribution system. A Java agent development environment-based multiagent system (MAS) is proposed to solve the problem of automatic service restoration in smart grid distribution systems. The agent-based solution development is discussed in detail and the MAS application to solve power restoration problem is elaborated in this paper. A study is done on a modified IEEE 33 bus system and the solution is implemented in the Velachery substation of the Tamilnadu electricity board. The results prove that fast and effective fault location, isolation and service restoration is achieved using the proposed solution.