Over the last decade, power systems have evolved dramatically around the world, owing to higher demand, stringent requirements on quality and environmental concerns that are becoming increasingly critical. With the introduction of new technologies like large-scale renewable energy, wide-area measurement based on phasor measurement units (PMUs) and consumer interaction in the distribution system, the power grid today has become more potent than ever before. Most of the defining features of the smart grid today rest on the integration of advanced communication capabilities into the grid. While communication infrastructure has become a key enabler for the smart grid, it also introduces new and complex control challenges that must be addressed. As we increasingly rely on information transmitted to distant areas over communication networks, it becomes imperative to model the effects of the communication system on the stability of the power grid. Several approaches exist in control theory to study such systems, widely referred to as Networked Control Systems (NCS). Networked control theory provides mathematical tools for system stability analysis and control in the presence of communication delays, packet dropouts and disordering due to transmission of sensor and actuator signals via a limited communication network. In this thesis, a networked control framework for smart grids with integrated commu-nication infrastructure (ICT) is developed. In particular, a networked control systems perspective is developed for two scenarios - wide-area monitoring control, and coordinated control of distributed generation sources. The effects of communication delays and packet dropouts on power system stability are modeled in detail. In the wide-area monitoring control problem, system state measurements are trans-mitted from remote locations through a communication network. The system is modeled as an NCS and a control design approach is presented to damp inter-area oscillations arising from various power system disturbances in the presence of communication constraints. In the coordinated control scenario, a power system with geographically dispersed sources is modeled as an NCS. A networked controller is designed to stabilize the system in the presence of small signal disturbances when system measurements are subject to communication delays and packet dropouts. A realistic output feedback networked control scheme that only uses voltage measurements from PMUs is also developed for practical implementation. The networked controllers designed in this thesis are validated against controllers designed by standard methods, by simulation on standard test systems. The networked controllers are found to enhance power system stability and load transfer capability even in the presence of severe packet dropouts and delays. Several extensions and theoretical problems motivated by this thesis are also proposed.