In this paper, a novel concept of multi-granularity p-cycle is proposed. In conventional p-cycle concept, all on-cycle spans have the same capacity. However, in multi-granularity p-cycle, each on-cycle span could have different capacity. Results show that multi-granularity p-cycles are much more capacity-efficient and cost-effective than conventional p-cycles. We also propose two protection switching schemes for all types of p-cycle networks. One is wrapping protection, in which only two end nodes do real-time switching when a span failure happens. The other is steering protection, in which at most four nodes do real-time switching when a span fails. In steering protection switching scheme, the restoration path for the failure traffic demand has the least hops.