This paper presents a microgrid stability controller (MSC) in order to provide existing distributed generation units (DGs) the additional functionality of working in islanding mode without changing their control strategies in grid-connected mode and to enhance the stability of the microgrid. Microgrid operating characteristics and mathematical models of the MSC indicate that the system is inherently nonlinear and time-variable. Therefore, this paper proposes an adaptive robust total sliding-mode control (ARTSMC) system for the MSC. It is proved that the ARTSMC system is insensitive to parametric uncertainties and external disturbances. The MSC provides fast dynamic response and robustness to the microgrid. When the system is operating in grid-connected mode, it is able to improve the controllability of the exchanged power between the microgrid and the utility grid, while smoothing the DGs’ output power. When the microgrid is operating in islanded mode, it provides voltage and frequency support, while guaranteeing seamless transition between the two operation modes. Simulation and experimental results show the effectiveness of the proposed approach.