Virtual synchronous generator (VSG) is an important concept toward frequency stabilisation of the modern power system. The penetration of power electronic-based power generation in power grid reduces the total inertia, and thus increases the risk of frequency instability when disturbance occurs in the grid. VSG produces virtual inertia by injecting appropriate active power value to the grid when needed. This virtual inertia can stabilise the grid frequency in case of a power imbalance between generation and loads or any disturbances that affected frequency stability. Its intensive research can see the importance of VSG in inertia control and various intelligent controller techniques. Owing to the importance of VSG in the modern power grid, this study provides a comprehensive review on the control and coordination of VSG toward grid stabilisation in terms of frequency, voltage and oscillation damping during inertia response. A review on the type of energy storage system used for VSG and their benefits is also presented. Finally, perspective on the technical challenges and potential future research related to VSG is also discussed in this study. Nomenclature P g measured active power Q g measured reactive power P * active power reference Q* reactive power reference V g * output voltage reference V g output voltage ω o reference angular frequency ω g grid Frequency ω r rotor angular frequency J moment of inertia constant D damping coefficient constant δ VSG phase angle X output reactance of the VSG K w governor proportional control gain K q reactive power proportional control gain T Q reactive power first-order lag time constant