Islanding detection needs are becoming a pivotal constituent of the power system, since the penetration of distributed generators in the utility power system is continually increasing. Accurate threshold setting is an integral part of the island detection scheme since an inappropriate threshold might cause a hazardous situation. This study looked at the islanding conditions as well as two transient faults, such as a single line to ground fault and a three-phase balance fault, to assess the event distinguishing ability of the proposed method. Therefore, the goal of this research was to determine the threshold of the island if the distributed generator (DG) capacity is greater than the connected feeder load, which is the over-frequency island condition, and if the DG capacity is less than the connected feeder load, which is the under-frequency island condition. The significance of this research work is to propose a new island detection threshold setting method using the slip angle and acceleration angle that comes from phasor measurement unit (PMU) voltage angle data. The proposed threshold setting method was simulated in the PowerWorld simulator on a modified IEEE 30 bus system equipped with DG. There are three different interconnection scenarios in the test system and the performance of the proposed method shows that getting the island threshold for all the scenarios requires a single time step or 20 mile seconds after incepting an island into the network. In addition, it can distinguish between the real islanding threshold and the transient faults threshold.