China's power conflicts between supply and demand have become increasingly prominent. The smart grid has become an inevitable trend of network development at the same time, and DSM implementation effect in smart grid research increasingly attracts people’s attention. Through the analysis of different subjects in demand side management, the paper established demand side management effectiveness evaluation system in smart grid from the aspects of economic , environmental and social. Finally, empirical research verified the validity of the index system ,which provides a good reference for improving the level of demand side management.