This paper proposes a distributed algorithm for Fault Location, Isolation, and Service Restoration (FLISR) to be implemented as part of the intelligent software for controlling the operation of each circuit breaker. The paper proposes an event driven finite-state machine design that assures the self-reconfiguration of the distribution power grid when a fault occurs on a certain section of a feeder. The benefits of such an approach are first of all the modularity, as each breaker is controlled by the same algorithm and requires data exchange only with the neighboring protection devices. Secondly, by using the event driven technique, the FLISR algorithm is perfectly suited for taking advantage of the features and benefits defined by the IEC 61850 protocol. Using GOOSE messages for transferring status information between the neighboring circuit breakers, the proposed distributed algorithms act in a collective manner for reconfiguring the distribution grid.