This paper introduces a novel control approach for Doubly-Fed Induction Generator (DFIG) operating in island mode based on the cascaded control structure with disturbance estimation. The control of the DFIG is a challenging task due to its inherent nonlinearity, fast dynamics, and unpredictable disturbances acting on the system. The proposed control structure involves a nominal controller for plant and disturbance observer (DOB) in each of the inner and outer control loop. The first-order disturbance observers are designed to estimate the time-varying and unknown disturbances. With disturbance estimation, the nominal linear dynamics is obtained in both loops. This enables the same approach for designing controllers for the inner and outer loop which significantly simplifies implementation. The controllers are designed based on the demanded error dynamics and ensure stable operation of the system, while proposed DOBs estimate disturbances including external load. Finally, the effectiveness and quality of the proposed control structure were verified through numerical simulations in terms of external disturbances rejection and closed-loop tracking performance.