Electrical power infrastructure worldwide is undergoing rapid transformation driven by increasing system complexity, higher penetration of distributed energy resources, and rising expectations for reliability and resilience. Traditional monitoring and protection schemes, largely dependent on centralized supervision and offline analysis, are increasingly insufficient for modern grids characterized by fast dynamics, bidirectional power flows, and heterogeneous assets. In this context, embedded control and sensing systems have emerged as a critical technological foundation for enabling continuous situational awareness, localized decision-making, and adaptive system response across transmission and distribution networks. By integrating sensors, controllers, and communication capabilities directly within grid assets, embedded systems support real-time data acquisition and low-latency control actions that are essential for maintaining operational security and efficiency. From a systems perspective, embedded sensing enables high-resolution visibility of electrical parameters such as voltage, current, frequency, and power quality, while embedded control facilitates rapid protective actions and coordinated optimization at the device and feeder levels. These capabilities underpin advanced functionalities including fault detection and isolation, adaptive protection, dynamic voltage regulation, and condition-based asset management. As power networks evolve toward cyber-physical systems, embedded intelligence increasingly complements supervisory control architectures by enabling decentralized autonomy and reducing reliance on centralized processing. This study narrows the focus to the role of embedded control and sensing systems in real-time monitoring, protection, and optimization of electrical power infrastructure. It examines how tightly coupled hardware–software architectures enhance responsiveness to disturbances, improve protection selectivity, and support optimization objectives such as loss minimization and voltage stability. By linking embedded intelligence with real-time operational requirements, the work highlights the importance of embedded systems in achieving secure, efficient, and resilient power system operation under contemporary grid conditions.