Smart grids, which have the ability to detect and monitor necessary system parameters and user behaviors, have gradually become the development trend for future power networks. With increasing scale and access of new energy source, SGs become more unstable and vulnerable when changes of network topology occur abruptly. Among different kinds of abrupt changes, unexpected line outages may give rise to significant potential damages to SGs and lead to the very bad user experience. Thus, accurate and rapid detection of line outages turn into one of the important tasks and challenges in SGs. By utilizing the sparse property of line outages, compressive sensing (CS)-based line outage detection schemes have been proposed recently, in which the phase information collected from phasor measurement units is also fully utilized. In this paper, a novel block-wise CS (BW-CS)-based multiple line outage detection scheme is proposed for SGs. Firstly, by exploiting the sparsity of line outages and topology structure of the power grid, a novel reactance model is introduced, which makes the block-wise CS algorithm can be adopted. Then, by modifying one step of the conventional CS algorithm with the redefined element selection, criterion is modified to improve the recovery accuracy. Finally, the proposed scheme is extended into a three-phase power system. The simulation results show that our proposed BW-CS method can achieve superior precision with the similar complexity compared to the traditional methods.