Smart grids can improve the operational efficiency and reliability of power systems, and optical transmission control protocol (OTN) technology is widely used in the field of power communication. This article focuses on the control and management of smart grid optical networks, aiming to achieve efficient control and management of smart grid optical networks through OTN technology. This article proposes a smart grid OTN management system based on Optical Transmission Control Protocol (OTN) technology. This system achieves the management and optimization of power OTN business by researching functions such as container management and service orchestration, pod and physical node management, application and cluster status monitoring, application logs and cluster logs. In this system, the sources of data are very rich. Data can be obtained from databases, file streams and Flow network. This can ensure that the system receives comprehensive data support for better business analysis and decision-making. This article further studies the optimization methods of optical network control for power OTN services to improve network reliability and reduce risk levels. The experimental results indicate that the use of OTN technology can improve the operational efficiency and reliability of the smart grid, and achieve remote monitoring and control of the smart grid.