Large-scale autonomous microgrids have potential application values as they can increase renewable energy penetration level without compromising the stability of the existing large power systems. Before their widespread implementation, critical issues like stability analysis etc need to be solved. This paper analyses the stability in an autonomous microgrid operated at constant frequency with the consideration of reactive power balance. Difference equations of reactive power for the grid-forming generator are constructed separately from those for the grid-supporting and grid-feeding generators while the difference equations of the real power for all the generators are the same. For the voltage source inverter with its current controlled by proportional resonant controller, at the fundamental frequency, its output current is disentangled from its terminal voltage and is controlled to trace its reference accurately, namely . Therefore, each inverter can be modelled as an equivalent current source and the equivalent circuits for d-component and q-component can be separated from each other. Then, the nodal equations in matrix form for the microgrid system can be established readily. With these, the system level state-space equations are built to study the distribution of eigenvalues. By choosing proper coefficients for real power and reactive power reference generations and controller’s parameters, one can make all the eigenvalues falling in the left-hand-side of the complex plane. Therefore, the system is stable. Such a research paves the way for systematically searching good sets of coefficients and controller’s parameters which make system operate safely away from unstable region with necessary margin.