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The occurrence cause and negative effects of the islanding are presented in the paper, and a new method is presented based on chaos system. This paper applies certain chaos system of its sensitivity to periodical voltage signal to make its periodical solution yield a dramatic change to detect islanding, existence of the islanding can be identified by discriminating operation status of chaos system. The proposed method is showed to have fast acting and little influence on power quality. The simulations of the proposed method are carried out according to IEEE Std 1547-2003, the simulation results verify its effectiveness.