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Smart Grid requires lots of applications in the terminals to sense the environment or control the intelligent devices. Due to the low cost and high function, wireless sensors have been deployed in power grid wildly. Depending on wireless sensor network (WSN), the grid can build a two-way communication system, and then customers can interact extensively with the network, both in providing power consumption data and even feeding back domestically produced energy into the grid. This paper starts with an overview of various applications of wireless sensor network in smart grid and then discusses exiting issues. Wireless sensor network can sense and monitor the transmission line, substation, home etc. however, the issues of security, reliability, standardization etc should be address.