Microgrid is an aggregate of generating units and loads at the distribution level. It operates in two modes: Grid connected mode and Islanded mode. Power continuity is very essential for critical loads in microgrid and maybe achieved vide 100% standby diesel generator sets in a microgrid network. This paper considers a real time 24/7 Information Technology (IT) campus where even a very short power break will lead to huge commercial loss. Hence it is very important to bring the standby power during the utility power failure. This is achieved through multiple diesel generator sets synchronized in a single panel through a proper sequential logic vide programmable logic controller (PLC). In the event of fault occurrence, based on the receipt of signals from the respective relays, the PLC identifies the fault and issues appropriate tripping commands to the microgrid to safely isolate the fault. The significance of neutral isolating contactor (NIC) and neutral grounding resistor (NGR) in microgrid protection is also analyzed. © Springer Science+Business Media Singapore 2016.