This chapter provides a comprehensive understanding of demand-side management (DSM) and its application in the context of Smart Grid. It begins by highlighting in Sect. 3.1 the benefits and potentials of DSM from both consumers’ and utilities’ perspectives. In Sect. 3.2, the concepts of load-shifting, valley-filling, and peak-shedding, which are integral to DSM, are then introduced. Section 3.3 covers various pricing and incentive-based schemes such as time-of-use, real-time pricing, and critical-peak pricing, as well as ancillary services and capacity market programs. Additionally, it presents demand-side bidding, emergency and interruptible programs, and direct load control. Section 3.4 focuses on the essential components required for implementing DSM. This includes an overview of prediction modeling, specifically statistical and machine-learning models, the transition from traditional analog meters to Smart Meters, the need for bi-directional networking infrastructure for seamless communication, and the support of additional hardware like load control switches, controllable thermostats, and adjustable speed drives for load control.