The most significant of the active islanding detection techniques is “Sandia Frequency Shift” (SFS), and this employs frequency drifting to identify extra Nondetection Zone. Inappropriate tuning parameters, such as the acceleration factor and chopping factor, result in frequency drifting, which degrades the quality of the power and causes the continuous power mode to fail. The failure can be overcome by considering optimized parameters to identify the nondetection zone (NDZ) in small DG system (120 kVA) at constant power/current mode. This article discusses, a new Adaptive Fuzzy Particle Swarm Optimization-SFS (AFPSO-SFS) technique is recommended to attain optimal parameters of SFS anti-islanding detection technique for validation of the proposed algorithm Particle Swarm Optimization–SFS (PSO-SFS) is also implemented. Furthermore, the ability of this method is to identify an islanding situation which deteriorates the major scientific issues for small DG system. Thus, the optimized parameter helps to attain an anti-islanding as well as less impact on power quality. Moreover, this article concerns serious issue of the grid interconnected DG model in an islanding condition, when the utility line would be unintentionally isolated. The grid detachment is generally considered as a fault. When an islanding occurs, the DG protection system must be inactive to detect the fault. For the investigation of power mismatches, the output of considered system using the proposed methods is contrast with results obtained from PSO-SFS and conventional SFS. The recommended strategy analyzes islands more effectively and diagnoses nondetection zones more accurately. The recommended method’s reliability is calculated quantitatively and emulated with MATLAB/Simulink.