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The dynamic nature of the distribution network challenges the stability and control of the microgrids. In this paper, nonlinear model of the autonomous microgrid is presented. Optimal controller design and power sharing coefficients is carried out in this mode. The control problem has been formulated as an optimization problem where particle swarm optimization (PSO) is employed to search for optimal settings of the optimized parameters. Nonlinear time domain simulation has been carried out to assess the effectiveness of the proposed controllers under several disturbance cases. The results show satisfactory performance with efficient damping characteristics of the microgrid considered in this study. Additionally, the effectiveness of proposed approach for optimizing different parameters and its robustness have been confirmed through the nonlinear time domain simulations.