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This paper proposes a new generation dispatch system for the smart grid environment. As distributed generation, demand response and renewable energy resources become significant portions of overall system installed capacity, a better system dispatch tool for system control centers is required in order to cope with the increasing amount of uncertainties being introduced by the new resources. A Smart Dispatch (SD) framework for regional transmission organizations and transmission system operators to manage large power grids is proposed. In particular, the ability of the new dispatch system to provide a better holistic and forward-looking view of system conditions and generation patterns will be discussed in detail. Such features are deemed critical for the success of efficient system operations in the future. A practical example of applying the SD framework to a modern grid control center is provided.