The dependence of distributed generations (DGs) on climate conditions and fluctuating load demands are the challenges for the implementation of battery energy storage systems (BESSs) in islanded microgrids. BESS participation in system frequency regulation becomes one of the solutions to those challenges. Frequency regulation by BESS can be realized by applying the load-frequency control (LFC) in BESS. However, this participation clearly poses problems for the battery state of charge (SOC), as the battery is often overcharged or undercharged. In this paper, a control that maintains SOC at a certain level is introduced. This control strategy focuses on the battery operation function, which is determined from five control scenarios. All scenarios are achieved by applying the droop reference shifting method in the LFC to allow battery operation change. Control verification is carried out on an islanded microgrid system that experiences load demand changes and photovoltaic (PV) output power changes. The test results show that the SOC is maintained at 45–75% by applying load and PV power variations. The results correspond to the predetermined criteria control.