Owing to the particularity of distributed generation(DG), the conventional restoration algorithm is incapable of application to the distribution system with DGs. This paper proposes a new strategy for service restoration with DGs. First, in view of the development of DGs, such standards for the islanding as IEEE929-2000 and IEEE1547-2003 are introduced. The former forbids the advent of islanding while the latter allows the implementation of intentional islanding. In view of the increasingly high requirements on power supply reliability, and the ever growing DGs’ injection capacity, the research is based on the latter standard. Then, three types of islanding modes are presented along with their advantages and disadvantages. For the load flow of the distribution system with DGs, the improved backward-forward sweep is adopted. Finally, the procedure of service restoration in the distribution system with DGs taken into account is given. The validity of the algorithm proposed is shown by the simulation results of an example.