The realisation of an eventual low-voltage (LV) Smart Grid with a complete communication infrastructure is a gradual process. During this evolution the protection scheme of distribution networks should be continuously adapted and optimised to fit the protection and cost requirements at the time. This paper aims to review practices and research around the design of an effective, adaptive and economical distribution network protection scheme. The background of this topic is introduced and potential problems are defined from conventional protection theories and new Smart Grid technologies. Challenges are identified with possible solutions defined as a pathway to the ultimate flexible and reliable LV protection systems.