Challenges with current power systems include increasing energy costs and Greenhouse gasses. Participation in distributed generators (DGs) and demand response (DR) strategies inside the distribution network may solve these issues. This paper's primary objective is to suggest an energy management system (EMS) strategy for campus microgrid reduce all the issues mentioned above. To practice this strategy a microgrid is considered. Conventionally the microgrid uses a utility grid to fulfill load demands. But in the proposed model the integration of a micro turbine, photovoltaic (PV) system, battery energy storage system (BESS), and Electric vehicles is proposed.  Mix integer linear programming MILP technique is used in MATLAB to solve the non-linear optimization problem. The energy management system EMS and demand response policies are used to optimally schedule the available resources and reduce energy costs. The integration of EVs is also observed as source and load. The simulation results are discussed and different case studies are analyzed. Simulation results show that 46% cost saving is observed while using EVs in the system as source. The real-time energy interruption problem is also observed in this paper.