Summary form only given. This paper presents a new control strategy for islanded (autonomous) operation of an electronically-coupled distributed generation (DG) unit and its local load. The DG unit utilizes a voltage-sourced converter (VSC) as the coupling medium. In a grid-connected mode, based on the conventional dq-current control strategy, the VSC controls real- and reactive-power components of the DG unit. Subsequent to an islanding detection and confirmation, the dq-current controller is disabled and the proposed controller activated. The proposed controller utilizes (i) an internal oscillator for frequency control and (ii) a voltage feedback signal to regulate the island voltage. Despite uncertainty of load parameters, the proposed controller guarantees robust stability and pre-specified performance criteria, e.g. fast transient response and zero steady-state error. Performance of the proposed controller, based on time-domain simulation studies in the PSCAD/EMTDC software environment, is also presented.