Distributed control and optimization strategies in power systems are gaining more and more attention, especially with the increasing penetration and integration of distributed generation. These novel distributed control and optimization algorithms need to be rigorously validated before their widescale deployment and acceptance. In this paper, a testing rig comprising real-time simulation with control and power hardware in the loop capability, with a multi-agent system platform and realistic communications emulation is utilized for the systems level validation of a distributed frequency control algorithm. The distributed frequency control is implemented within an islanded microgrid and its performance under two disturbances is assessed under real-world conditions. Index Terms-distributed control, multi-agent system, realtime simulation, power hardware in the loop, frequency control.