The reliability of power system under fault susceptible environment has become major challenge for the power sector units. The injection of renewable power source has increased the complexity for distribution system and to deal with massive network, evolution of smart-grid has been enforced, which works in an automated fashion to improve overall reliability, efficiency and quality of the system. Proactive Self-healing is a critical feature of smart-grid. This paper tries to explain the concept sensing the occurrence of fault beforehand and providing possible solution for self-healing in smart grid. The fundamental base for incorporating afore discussed technology viz. understanding nature of fault, sources of fault and implementation of effective measuring techniques are enumerated in paper briefly. Support required in terms of technology is reviewed towards the end followed by a case study of practical implementation of self-healing control in a distribution system.