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Nowadays, power generation from renewable energy source is a preferred option and will continue to grow during the coming years. Distributed generation (DG) technologies include photovoltaic, wind turbine and fuel cell, etc., which use renewable energy sources. Most DG units use two generation types i.e. induction generator and synchronous generator. It is crucial that the power system impacts be assessed accurately so that these DG units can be applied in a manner that avoids causing degradation of power quality, reliability and control of the utility system. This paper presents the dynamic modelling of electrical network as well as DG units in order to study islanding behaviour in steady state and transient simulation. The impact of different DG types has been studied on the IEEE 34-bus system using a commercial software tool.