With high penetration of distributed energy resources (DERs) into power systems, microgrid has showed great advantages of enabling efficient and reliable operation of distribution grids with high flexibilities and robustness. This paper discusses the recent advancementsof microgrid development with particular focus on different dispatch, and control schemes using distributed communication technologies, load management technology,and protection strategies applied in a microgrid environ-ment. It also describes typical R&D activities and projects worldwide in e.g. European Union (EU), Japan and the United States (US). Based on comprehensive review, it is convinced to conclude that microgrids could provide electricity supply with higher efficiency, reliability and quality to regional customers and will make contributions to smart grids development at large.