This thesis focuses on investigating virtual oscillator control (VOC) and applying it to mixed source microgrids to address several stability issues. A detailed comparison between VOC and droop control in a three-phase system is presented in terms of transient responses of a single inverter under small load disturbances and the synchronization speed in multiple paralleled inverters under various inverter terminal voltage amplitude and frequency regulation settings. In the single-inverter microgrid, it is demonstrated in both simulation and experiment that the two control models produce similar transient responses in the output voltage and current amplitudes. However, VOC has a faster instantaneous frequency transient response whilst still maintaining the terminal voltage amplitude transient response of the droop controller. In microgrids with multiple inverters, the synchronization speed of the VOC is faster than that of the droop control when the terminal voltage’s frequency regulation range is allowed to be wide. The conclusion is verified with different types of loads. A virtual inertia design method for the VOC inverter with a mixed source microgrid is presented to improve the frequency stability issues of the system. The per unit inertia constant of a VOC inverter is derived when coupled with a synchronous generator in an islanded microgrid. The control parameters of the virtual inertia are designed via small-signal analysis. A dual second order generalized integrator - frequency locked loop (DSOGI-FLL) is adopted for digital implementation of proposed virtual inertia based VOC. With the use of virtual inertia block, the frequency nadir is improved by 22% and rate of change of frequency is improved by 29% compared with the unmodified VOC inverter during the transient period induced by load disturbances. Simulation and experimental results verify the enhanced transient response of system frequency. A voltage and current dual-loop control structure is added to the VOC inverter to solve the voltage drop issues at the inverter terminals caused by the inverter dead-time effects, non-ideal semiconductor and LCL filter. A complete small-signal model for a multiple-inverters microgrid with the proposed control structure is presented in order to assess system stability using eigenvalue and participation factor analysis. Analytical results show that the parameter related to the frequency regulation and the integral gain of the voltage controller affect the location of the system’s dominant modes significantly. The stability margin is determined by modifying these control parameters. Experimental results on a laboratory test microgrid verify the predication from the small-signal analysis and time-domain simulations. Finally, a method to limit current in the VOC inverter under large disturbances in a mixed source microgrid is proposed. During a large load change in the islanded microgrid, the inverter based sources may get temporarily overloaded until other generations with sufficient power margin take the remaining load burden. The original VOC inverter lacks the ability to constrain the current within limits during the transient period. The dual-loop structure proposed in this thesis can limit the transient current with the use of virtual impedance. Such virtual impedance is presented by the desired maximum current magnitude and virtual voltage drop. Compared with a recently proposed fault ride through VOC inverter, the proposed virtual impedance based current limitation method can effectively constrain the inverter current within the pre-set value under large disturbances, which augments the range of application of VOC and enhances its robustness.