In this paper, a complete small signal model of two networked microgrids (NMGs) is provided, which can be used in the stability analysis, stability margin derivation and controller design. This model is validated by comparing it with the simulated NMGs using the Prony analysis. In this method, the modes, calculated by eigenvalue analysis and contributing to a particular state variable, are identified using the participation matrix and compared with the natural frequencies of its waveform. The state variable waveform is locally measured from the simulated NMGs in the SimPowerSystems environment of MATLAB and its natural frequencies are calculated using Prony analysis. It is concluded that Prony analysis estimates the natural frequencies well and there is a good similarity between them and the calculated modes, which shows the modeling validation.