Power utilization reliability advancement engineering for smart distribution grid is an important means for power grid enterprises to improve their management and service quality. Considering the new concept of power utilization reliability for smart distribution grid, this paper establishes an index system to evaluate demands of power utilization reliability promotion. Hence an optimal object selection model of power utilization reliability promotion is set up, and a comprehensive weight method combined with analytic hierarchy process and improved entropy method is used to vary the index weight. Meanwhile, the traditional technique for order preference by similarity to ideal solution is improved based on absolute ideal solution theory and grey correlation degree, which can avoid the error caused by the reverse order problem. According to the result, the smart distribution grids needed to be improved most are selected out, which is better to maximize social and economic benefits. Finally, the effectiveness of index system and model is verified with an example. This work is supported by Key Project of National Natural Science Foundation of China (No. 51777077).