In this paper, a model for power management of an isolated balanced microgrid considering technical constraint such as: small signal stability and dynamic response is presented. In power management of an isolated balanced microgrid, it is necessary to consider technical and economical constraints. The proposed model consists of two stages. First, operation cost is minimized, then at the second stage, considering economical operation while load variation, small signal linearized model of a microgrid and technical constraints such as: rise time, settling time, damping coefficient modes, optimal value of droops are evaluated. Simulation has been done using GAMS, MATLAB software and the results show the effectiveness of proposed the model
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