With　the　proposal　of　the　＇dual　carbon＇＇　goal,　distributed　energy　resources　are　widely　used　in　carbon　reduction　and　transformation　in　urban　and　rural　areas　of　China.　However,　due　to　the　characteristics　of　distributed　energy　generation,　there　are　still　some　problems　and　challenges　in　its　application.　So　far,　few　papers　have　commented　on　the　new　development　obstacles　and　challenges　of　distributed　smart　grids.　In　order　to　clarify　the　characteristics,　challenges,　and　future　research　prospects　of　distributed　smart　grids　more　clearly,　this　article　first　focuses　on　the　real　cases　and　characteristic　analysis　of　distributed　smart　grids　in　rural　and　urban　park　scenarios　in　China.　Next,　the　key　analysis　and　control　technologies　that　have　been　applied　or　can　be　applied　to　distributed　smart　grids　in　rural　and　park　scenarios　are　summarized.　Finally,　a　detailed　discussion　is　conducted　on　the　current　issues,　challenges,　and　future　research　directions　of　distributed　smart　grids　in　China　in　terms　of　stability,　security,　rural　infrastructure,　and　consumption.　©　2024　IEEE.