This study presents a Distribution System State Estimation (DSSE) algorithm for unbalanced smart grids and evaluates its performance with special focus on the effect of the unavailability of measurements, which is a common problem on smart grids. The proposed DSSE algorithm is based on the Weighted Least Squares (WLS) method and the unbalanced power flow analysis and addresses several challenges such as unbalanced consumption, various configurations and types of loads, line couplings and lack of measurements. To validate the proposed algorithm’s performance, the IEEE 4-node test feeder and the IEEE European Low Voltage test feeder, comprising 907 nodes, are used as benchmarks. A detailed analysis of the DSSE state results, their deviations from the IEEE test feeders, and their sensitivity regarding measurements’ availability, demonstrates the accuracy and robustness of the proposed solution.