Abstract: This paper presents the main method and some numerical results for the analysis of energy response and dynamic reliability of smart isolated structures. Using the structures under minor earthquakes as examples, a momentary energy transferring relation in smart isolated structures is derived using analytical method, and the method for analysis of dynamic reliability of smart isolated structures is listed under major earthquakes. In the case of major earthquakes, Bouc-Wen hysteretic model is adopted to represent the isolator and degrading Bouc-Wen model is used for the superstructure. The pseudo excitation method (PEM) is employed to calculate the random response of the structures. Double damage parameters of maximum story drift and hysteretic energy are adopted as limit state indexes according to the requirement of “no collapse under major earthquake” specified by Aseismic Design Code of China. Using a real isolated structure, designed by the authors, as a numerical example, the energy response and conditional failure probability of passive and smart isolated structures were compared with those of the fixed base structures, the advantage of vibration mitigation of smart isolation was demonstrated.