In this paper, the concept and system structure of the self-healing urban power grid (UPG) are presented. The proposed method has five operating states and four subcontrols, which are emergency control, restorative control, corrective control and preventive control. The entire self-healing UPG is controlled by the multiagent system (MAS). The agent system has three layers, each of which comprises several agents. This paper discusses the design and function of each agent, as well as the agents' structures and their communication methods. A practical test case based on the urban power grid in Jiangning County in China is employed to demonstrate the ability of the proposed agent-based system to perform self-healing functionality. Research findings indicate that the self-healing control system proposed in this paper can intelligently adjust the operating state to eliminate all the potential threats, and thus achieving the desired operation objectives.