Due to problem of obsolete and sole function equipment and the requirement of improving power distribution efficiency and security in rural and remote areas, a design of intelligent power distribution system in rural grid based on Internet of Things (IoT) technology is proposed in this paper. The functions of collecting the data of electric quantity information, data processing and transmission of the data, alarming in abnormal state and analyzing the harmonic are realized in the rural intelligent power distribution system. In this paper, the system architecture and composition are summarized; the design process and key points are described in detail; the results of the harmonic analysis are validated. The application of the system indicates that it can improve the distribution efficiency to optimize status of rural distribution substation, and monitor the operation of the equipment based on the IOT.