Three-phase droop controlled inverters are widely used in islanded microgrids to interface distributed energy resources and to provide for the loads active and reactive powers demand. The assessment of microgrids stability, affected by the control and line parameters, is a stringent issue. This paper shows a systematic approach to derive a closed loop model of the microgrid and then to perform an eigenvalues analysis that highlights how the system’s parameters affect the stability of the network. It is also shown that by means of a singular perturbation approach the resulting reduced order system well approximate the original full order system.