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The distributed generation has a great impact on real-time operation and planning for traditional power systems. It increases the complexity of controlling, protecting, and maintaining distribution systems. A novel scheme of stability control for distributed systems is proposed in the paper. The characteristics for different distributed generations are discussed and the control models for the emergency state are developed. Distribution generation system in fault conditions is usually divided into two parts: interconnected system and isolated system. Different controlling schemes are developed in different systems. In the interconnected system, the stability control is maintained by the grid system. In the isolated system, a scheme for stability control is discussed according to the dynamic model of the distribution generation. The scheme of stability control for distributed generation system has been tested on a dynamic model in the laboratory. The stability controller has been developed; results show that the scheme has good performance in distributed generation systems.