The uprising interest in multi-agent based networked system, and the numerous number of applications in the distributed control of the smart grid leads us to address the problem of time synchronization in the smart grid. Utility companies look for new packet based time synchronization solutions with Global Positioning System (GPS) level accuracies beyond traditional packet methods such as Network Time Proto- col (NTP). However GPS based solutions have poor reception in indoor environments and dense urban canyons as well as GPS antenna installation might be costly. Some smart grid nodes such as Phasor Measurement Units (PMUs), fault detection, Wide Area Measurement Systems (WAMS) etc., requires synchronous accuracy as low as 1 ms. On the other hand, 1 sec accuracy is acceptable in management information domain. Acknowledging this, in this study, we introduce gossip algorithm based clock synchronization method among network entities from the decision control and communication point of view. Our method synchronizes clock within dense network with a bandwidth limited environment. Our technique has been tested in different kinds of network topologies- complete, star and random geometric network and demonstrated satisfactory performance.