The power demand with interest in green power has focused researcher to develop the distributed power generation using wind energy, solar energy, etc. With the fast depleting fossil fuel reserves, energy security and environmental concerns there is a huge requirement of alternate sources of energy to fulfill the present energy demand. Distribution generating system can support the weak grids, maintaining grid power, managing balance power and enhancing the power quality. Any research work base depends on the literature survey and the studies carried out by several kinds of research and their support to research field encourages for more scope of research. The important advantages related to microgrids have led to huge efforts to grow their dispersion in the power systems. While microgrid is fast growing but there are still various challenges to efficiently control, design, and operate microgrids when linked to the main grid, and also when in islanded mode, where wide research actions are ongoing to handle these issues. This paper presents a review of issues concerning integration of renewable energy sources to microgrids and offers a description of research in areas related to economic feasibility of microgrids system, including dynamic analysis of microgrid hybrid system in grid-connected mode, application of power electronics, microgrid operation, and control.