The aim of this paper is to evaluate the distribution system reliability including weather dependency of component failure rate (FR) and restoration time (RT) while an efficient Multilevel Monte Carlo (MLMC) method is used. The effects of different weather conditions such as high winds, lightning can be incorporated in the reliability evaluation by considering their impacts on FT and RT. MLMC method is a recently developed variance reduction technique for Monte Carlo simulation (MCS) which is proposed for reducing reliability indices computation time. Application of the MLMC method is carried out on a well-known test distribution system. The effects of the normal and adverse weather conditions on reliability estimation are determined. The results are compared with those obtained by using MCS.