Under the background of energy shortage and severe pollution, the distributed generations spread rapidly. The study which is the planning of distribution network with distributed generations is also increasing. However, littleSresearchShas been done intoSthe study that is the planning of distribution network with distributed generations which are in the form of microgrid. In this paper, different types of distributed generations and energy storing device are connected to the distribution network in the form of microgrid. And the influence which is created as the microgrid joins on the planning of substation and the network is fully considered. Model of substation locating and sizing and network planning is respectively established based on model of microgrid system. The foregoing multiobjective nonlinear models are solved by using the improved particle swarm optimization. In addition, the reduction of substation capacity and the interruption cost which can be avoided during the fault of distribution network that are both caused by microgrid are calculated. Finally, IEEE50 example is used to verify that the proposed model is in favor of improving the reliability and economy of the system. And it is also good for structure of the network. The model in this paper has practical engineering significance.