The invention relates to a generator set smart grid system and a realization method. The system comprises a cloud principal computer layer, a communication layer, and a bottom generator layer. The cloud principal computer layer includes a server hardware system and a user terminal communicating with the server hardware system through a communication network. The bottom generator layer includes generator sets and generator set control systems used for controlling operation of the generator sets respectively. The communication layer is used for realizing communication between the cloud principal computer layer and the bottom generator layer, and the communication layer includes a protocol converter. By adopting the system and the method thereof, users can maintain and use generators very simply and conveniently, the service life of generator sets can be significantly prolonged, the health degree of generator sets can be effectively detected in real time, the working reliability of generator sets can be greatly improved, and the after-sales maintenance cost of generator set manufacturers can be greatly reduced.