Micro-grid plays a vital role in fulfilling the increasing demand by using distributed renewable energy resources. Demand and response technique can be broadly classified under the setup DR deployed (e.g. ISO’s/RTO’s). Demand response program can be implemented to improve power system quality, reliability and increasing demand. In modern power industry, strategic player can take more benefit from more emphasized DR study in terms of social benefit (uninterrupted power supply to consumers) and economy. This paper proposes the distributed micro-grid control and implemented control setup implemented demand response algorithm, which provides better power system reliability. This paper presents contingencies control demand and response for micro-grid. The main advantage of implementation of demand and response algorithms in Micro-grids provides reliable power supplies to consumers. The proposed micro-grid TCP/IP setup provides a chance to respond the contingencies to recover the shed to active condition. Micro-grid controller implements demand and response algorithm reasonable for managing the demand of the load and intelligent load scheme in case of blackout.