Abstract: Distributed Generator (DG) is a part of distribution network which is used to supply power both to the local loads and network. DG provides clean energy as it uses pollution free re-newable energy resources to generate power so interest in DG increases. Although DG provides many advantages such as improved reliability, efficiency etc it faces one technical issue called unwanted islanding phenomenon. Active and passive techniques are mainly used to detect islanding. Both active and passive techniques have its own advantages and disadvantages. This paper presents a novel islanding detection technique which is combination of both active and passive technique. MATLAB/SIMULINK platform is used for simulation and analysis of results.