Future power system has several challenges. One of them is the major changes to the way of supply and use energy; building a smarter grid lies at the heart of these changes. The ability to accommodate significant volumes of decentralized and highly variable renewable generation requires that the network infrastructure must be upgraded to enable smart operation. The reliable and sophisticated solutions to the foreseen issues of the future networks are creating dynamically intelligent application/solutions to be deployed during the incremental process of building the smarter grid. The smart grid needs more powerful computing platforms (centralized and dispersed) to handle large-scale data analytic tasks and supports complicated real-time applications. The implementation of highly realistic real-time, massive, online, multi-time frame simulations is required. The objective of this chapter is to present a general introduction to the DIgSILENT PowerFactory, the most important aspects of advanced smart grid functionalities, including special aspects of modelling as well as simulation and analysis, e.g. wide area monitoring, visualization, and control; dynamic capability rating, real-time load measurement and management, interfaces and co-simulation for modelling and simulation of hybrid systems. The chapter presents a very well-documented smart grid functionality, and limited cases are explained: Virtual Control Commissioning: connection to SCADA system via OPC protocol, direct connection to Modbus TCP devices, GIS integration with PowerFactory using API. The explained cases allow showing the full potential of PowerFactory connectivity to fulfil the growing requirements of the smart grids planning and operation.