The PV diesel hybrid controller benefits in higher reliability of operation, less pollution, reduction in operating cost, and enhanced system life. In this paper, the authors have proposed a robust hybrid controller to manage the power sharing among PV generator, Diesel generator and energy storage unit in a migrogrid network. With the higher penetration of renewable energy sources into the system, the need for robust hybrid controller to tackle highly intermittent nature of available power. The proposed hybrid control scheme facilitates optimum power sharing between the sources based on the dynamics of photo voltaic energy available at any given time. The changes in generation are mainly due to the intermittent nature of PV source and level of stored energy in battery. The hybrid power flow control has been realized by controlling the active power generated by the PV inverter and diesel generator as a function of the system frequency in the islanded mode of microgrid operation. A stand-alone controller has been developed to demonstrate the power flow control to envisage the saving in fuel consumption as well as highly reliable operation.