This paper proposes a distributed control scheme to regulate the power flows among multiple microgrids operating in islanded mode. Each microgrid controller gathers information from neighboring microgrids and reduces dynamic interactions. Modal analysis and time-domain simulations are used to identify critical issues that degrade the stability of microgrids under different operating conditions. A case study comprising three interconnected microgrids is considered. Each microgrid includes distributed generation and is described through a detailed dynamic model. Time-domain analyses are carried out considering different scenarios and large disturbances. Simulation results indicate that, while conventional controllers can lead to poorly damped power oscillations among the interconnected microgrids, the proposed control scheme guarantees stability in the postdisturbance operating conditions.