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Control of three-phase power converters in the synchronous reference frame (SRF) is now a mature and well-developed research topic. However, for single-phase converters, it is not as well established as three-phase applications. This paper deals with the design of an SRF multiloop control strategy for single-phase inverter-based islanded distributed generation systems. The proposed controller uses an SRF proportional-integral controller to regulate the instantaneous output voltage, a capacitor current shaping loop in the stationary reference frame to provide active damping and improve both transient and steady-state performances, a voltage decoupling feedforward to improve the system robustness, and a multiresonant harmonic compensator to prevent low-order load current harmonics to distort the inverter output voltage. Since the voltage loop works in the SRF, it is not straightforward to fine tune the control parameters and evaluate the stability of the whole closed-loop system. To overcome this problem, the stationary reference frame equivalent of the voltage loop is derived. Then, a step-by-step systematic design procedure based on a frequency response approach is presented. Finally, the theoretical achievements are supported by experimental results.