Objectives: This work focuses on the stability analysis of grid connected microgrids. It considers the impact of load disturbance and grid voltage change on voltage and current levels, as well as reactive and active power responses, is analysed. Methods: A comprehensive small-signal state-space model is developed for an inverter-based microgrid, incorporating submodules of inverters, phase-locked loops (PLLs), and LCL filters. The model is linearized around a stable operating point, and eigenvalue analysis is performed and validated through MATLAB/Simulink simulations. A current controller operating in the d-q frame is proposed to enhance stable power conversion and maintain microgrid stability. Findings: The proposed model and control strategy demonstrate the microgrid's ability to maintain transient voltage stability under severe dynamic conditions. During a 10% grid voltage fluctuation, the microgrid exhibits stable active and reactive power responses, with currents and voltages at the point of common coupling stabilizing within 0.2 seconds. Furthermore, when a 25 kVA active load is disconnected, the microgrid effectively manages the power transition, maintaining stable operation with minimal deviations in key parameters. The current controller simplifies AC current control, integrating active power management from solar input, DC-link voltage stability, and reactive power control. Novelty: The novelty lies in the comprehensive analysis of transient voltage stability in grid-connected microgrids under grid voltage fluctuations and load disturbances, areas that have received limited attention in previous research. By developing a detailed small-signal state-space model incorporating PLL and LCL filter dynamics and proposing a robust control strategy with the current controller, this study offers new insights into enhancing the resilience and reliability of grid-connected microgrids during transient events. Keywords: Microgrid, Small Signal Stability, Voltage Source Inverter, State Space model, Eigen Values