Due to the many attractive aspects of DG in the future power distribution system, distribution automation will be a center hub of integration of the distribution system and resources to satisfy the various needs of customers in a competitive and deregulated environment. In this paper, operation strategies are presented which use network reconfiguration of the automated distribution systems with DG as a real-time operation tool for loss reduction and service restoration from the view of distribution operation. The algorithms and operation strategies of an automated distribution system with DG are introduced to achieve the positive effects of DG in distribution systems. A simple case study shows the effectiveness of the proposed operation strategies.