In this paper, a false data injection prevention protocol (FDIPP) for smart grid distribution systems is proposed. The protocol is designed to work over a novel hierarchical communication network architecture that matches the distribution system hierarchy and its vast number of entities. The proposed protocol guarantees both system and data integrity via preventing packet injection, duplication, alteration, and rogue node access. Therefore, it prevents service disruption or damaging power network assets due to drawing the wrong conclusions about the current operating status of the power grid. Moreover, the impact of the FDIPP protocol on communication network performance is studied using intensive computer simulations. The simulation study shows that the proposed communication architecture is scalable and meets the packet delay requirements of inter-substation communication as mandated by IEC 61850-90-1 with a minimal packet loss while the security overhead of FDIPP is taken into account.