Abstract: To enhance the distributed generation (DG) integration capacity and operational stability of rural distribution networks, this study proposes an intelligent sensor-based solution addressing key challenges including grid structural complexity, inadequate monitoring, and power fluctuations. The proposed system integrates three core technical modules: edge-based data fusion, dynamic topology identification, and adaptive power coordination, enabling real-time grid status awareness and optimized control. Simulation results demonstrate that the solution meets or exceeds all performance targets, achieving significant improvements in data fusion accuracy, topology recognition rate, and voltage deviation reduction, thereby substantially enhancing the observability and controllability of rural distribution networks.