Abstract-This paper presents the application of Newton-based methods in the time-domain for the computation of the periodic steady state solutions of microgrids with multiple distributed generation units, harmonic stability and power quality analysis. Explicit representation of the commutation process of the power electronic converters and closed-loop power management strategies are fully considered. Case studies under different operating scenarios are presented: grid-connected mode, islanded mode, variations in the Thevenin equivalent of the grid and the loads. Besides, the close relation between the harmonic distortion, steady state performance of the control systems, asymptotic stability and power quality is analyzed in order to evaluate the importance and necessity of using full models in stressed and harmonic distorted scenarios.