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Reliability evaluation of distribution networks under grid-tied and islanded microgrid modes is presented. The Monte Carlo simulation (MCS) algorithm is applied to a modified RBTS Bus 2 distribution network. The network includes three types of distributed energy resources, namely, solar photovoltaic (PV), wind turbine (WT), and diesel turbine generator (DTG). These distributed generators contribute to supply part of the load during grid-connected mode, but supply 100% of the load in the islanded microgrid mode. This study shows that the implementation of distributed generations can improve the reliability indices of the distribution network.