-As the penetration of different types of renewable energy sources (RES) and energy storage systems (ESS) increases, the importance of stability in AC microgrid is being emphasized. Especially, RES and ESS which are operated using power electronics have difference in output characteristics according to control structures. When faults like single-line-to-ground fault or islanding operation occur, this means that a fault should be interpreted in different way. Therefore, it is necessary to analyze fault characteristics in AC microgrid in case of grid-connected mode and standalone mode. In this paper, the fault analysis for AC microgrid is carried out using PSCAD/ EMTDC and an overvoltage problem and the countermeasures were proposed.