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Active power distribution networks require sophisticated monitoring and control strategies for efficient energy management and automatic adaptive reconfiguration of the power infrastructure. Such requirements are realized by deploying a large number of various electronic automation and communication field devices, such as Phasor Measurement Units (PMUs) or Intelligent Electronic Devices (IEDs), and a reliable two-way communication infrastructure that facilitates transfer of sensor data and control signals. In this paper, we perform a detailed threat analysis in a typical active distribution network’s automation system. We also propose mechanisms by which we can design a secure and reliable communication network for an active distribution network that is resilient to insider and outsider malicious attacks, natural disasters, and other unintended failure. The proposed security solution also guarantees that an attacker is not able to install a rogue field device by exploiting an emer- gency situation during islanding.