A reliable operation of an islanded Microgrid (MG) depends on the synchronized functioning of renewable and Distributed Energy Resources (DERs) as well as Distributed Energy Storage Systems (DESSs). In this paper, we propose a hierarchical control approach utilizing multi-loop controllers to achieve decentralized power sharing between the various distributed generators and address the v Voltage/Frequency (V/f) restoration issues in an islanded MG. The control strategy employs droop control as the primary layer to ensure efficient power sharing between distributed generators, and decentralized secondary control to adjust the frequency and voltage, restoring them to their reference values. Moreover, for coordinating the power sources into the DC bus, type-2 Fuzzy Logic Control (FLC 2 ) is used, which ensures reliable system operation. Further, an Energy Management Strategy (EMS) based on Multi-Agent Systems (MAS) is designed to enhance the MG functioning. A hybrid islanded MG test system is established using MATLAB/Simulink environment to assess the effectiveness of our design approach. The obtained results validate the efficacy of the suggested control strategy.