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Abnormal condition in a power system generally leads to a fall in system frequency, and it leads to system blackout in an extreme condition. This paper presents a technique to develop an auto load shedding and islanding scheme for a power system to prevent blackout and to stabilize the system under any abnormal condition. The technique proposes the sequence and conditions of the applications of different load shedding schemes and islanding strategies. It is developed based on the international current practices. It is applied to the Bangladesh Power System (BPS), and an auto load-shedding and islanding scheme is developed. The effectiveness of the developed scheme is investigated simulating different abnormal conditions in BPS.