The development of an advanced modular control strategy for distributed generation-based islanded MicroGrids (MGs) is proposed in this article. This control strategy aims at achieving robust performances and accurate load power sharing in spite of system architecture. This strategy is based on the interconnection and damping assignment passivity-based control (IDA-PBC), which provides sufficient conditions to ensure the system modularity and stability. The design methodology of the proposed method is declined into three important steps. The whole system is modeled using the port-controlled Hamiltonian (PCH) formalism, the Hamiltonian function is minimized to synthesize the corresponding control laws, and finally, the stability of the synthesized control laws is verified. In this work, the Hamiltonian function is augmented with an enhanced decoupled droop (E2D) control in order to guarantee the stability of the whole system and ensure accurate power sharing when multiple DG units are interconnected. The effectiveness and modularity of the proposed modular IDA-PBC control with the E2D technique are evaluated and compared with a recent control strategy using an inner proportional-integral control with a decoupled droop technique. Experimental results and discussions are provided under resistive–inductive and nonlinear loading conditions.