This paper presents a novel distributed secondary control approach for droop-controlled microgrids (MGs). The conventional method relies on a central controller (MGCC) to restore frequency and voltage deviations, but this approach has limitations, such as system failure if the central controller fails. The proposed method uses a distributed networked control system to implement distributed secondary control (DSC), eliminating the need for a central controller. This approach not only restores frequency and voltage but also ensures reactive power sharing. The DSC does not depend on a central controller, so the failure of a single unit does not cause system failure. Experimental results show the feasibility of the DSC. The paper also studies the impact of communication latency and data drop-out on the system. The paper discusses the structure of primary control in MGs, which includes voltage and current control loops, virtual impedance loops, and droop control strategies. The conventional centralized secondary control is implemented in the MGCC, but the proposed method uses a distributed approach. The secondary control is implemented in each DG unit, and the control signal is generated based on measurements from other DG units. The secondary control includes frequency control, voltage control, and reactive power sharing. The paper also discusses the impact of communication latency and data drop-out on the system performance. The results show that the proposed DSC has good performance in removing frequency and voltage steady-state errors and can share reactive power between DG units effectively. The DSC is more robust to communication latency and data drop-out compared to the conventional centralized approach. The paper concludes that the proposed distributed secondary control is a viable solution for droop-controlled MGs.This paper presents a novel distributed secondary control approach for droop-controlled microgrids (MGs). The conventional method relies on a central controller (MGCC) to restore frequency and voltage deviations, but this approach has limitations, such as system failure if the central controller fails. The proposed method uses a distributed networked control system to implement distributed secondary control (DSC), eliminating the need for a central controller. This approach not only restores frequency and voltage but also ensures reactive power sharing. The DSC does not depend on a central controller, so the failure of a single unit does not cause system failure. Experimental results show the feasibility of the DSC. The paper also studies the impact of communication latency and data drop-out on the system. The paper discusses the structure of primary control in MGs, which includes voltage and current control loops, virtual impedance loops, and droop control strategies. The conventional centralized secondary control is implemented in the MGCC, but the proposed method uses a distributed approach. The secondary control is implemented in each DG unit, and the control signal is generated based on measurements from other DG units. The secondary control includes frequency control, voltage control, and reactive power sharing. The paper also discusses the impact of communication latency and data drop-out on the system performance. The results show that the proposed DSC has good performance in removing frequency and voltage steady-state errors and can share reactive power between DG units effectively. The DSC is more robust to communication latency and data drop-out compared to the conventional centralized approach. The paper concludes that the proposed distributed secondary control is a viable solution for droop-controlled MGs.