A modern islanded Microgrid (MG) faces more challenges due to not only a large number of DGs integrated into the system, but also a high demand in electricity usage at some periods of time. To improve the stability of the MG, a distributed containment-based control algorithm, together with a consensus control is proposed in high power converter-based islanded MG for keeping the output voltage within the permissible range, maintaining frequency at its rated value, and keeping the active/reactive power ratios among distributed generations (DGs) at the same time. The system stability is analyzed based on the small-signal model of the MG in the presence of the secondary control layer. In addition, according to the small-signal model, the effect of secondary control parameters and line impedances to the MG are investigated. Various simulation scenarios are conducted, based on MATAB/ SIMULINK software to validate the efficiency of the proposed controllers.