Background: In this paper, condition assessment of electric grid assets will be discussed and illustrated within the context of smart grid principle. This paper aims to add significant contribution to a smart grid theory. Material and methods: The proposed condition assessment process consists of five major stages as shown in Fig.2. Each stage is described briefly in the paper. The proposed condition assessment architecture is composed of two modules. The first module gathers maintenance strategies of the grid components. The second one is a detection and diagnosis module, which aims to detect the occurrence of drifts from the known and unknown failure modes for determining the current state of the process. Results: The proposed solution can reflect the physical state of the electric grid equipment, which positively affects its performance, function monitoring, and the health of grid devices. This system does not require any change in the smart grid infrastructure. Conclusions: In this paper, it was presented possible future direction in electrical smart grid. The presented idea is crucial for more reliable smart grid. It increases the reliability, safety, and lifetime of the grid equipment. It presents a timely and effective maintenance that are based on accurate inspection and good knowledge of equipment condition.