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The existing islanding detection techniques are generally classified into passive and active categories. Nevertheless, it has been demonstrated that "non-detection zones" (NDZ) still exist for some specific load impedances. A new algorithm using differential voltage correlation (DVC) method is hence proposed in this paper to alleviate this problem. To verify the proposed approach for islanding detection of a dispersed wind power generation system (DWPGS), it has been evaluated using different scenarios. Impacts of various loads, wind-speed abrupt changes, and power-quality (PQ) disturbances on the detection performance are also examined under conditions of both loss of grid-interconnection and parallel operations. From the test results, the effectiveness of the approach to reduce non- detection zone and improve the detection accuracy has been demonstrated.