This paper reviews the work done in power system restoration and its procedural development throughout the years. The issues during restoration are discussed in details. Network reconfiguration is done to minimize the losses of the line with minimal changes to the present network. Voltage profile is also a major issue during network reconfiguration which is also addressed in this reconfiguration process. The island formation during the restoration process and its issues are discussed in this paper. A suitable method for island formation during system restoration is proposed. © 2014 IEEE.