In recent electrical energy scenario different renewable energy based distribution generation (DG) systems have been developed to provide electrical power to distant and remote consumers. In view of this current research article presents a Tidal Power Plant (TPP) and its integration with an Islanded AC Microgrid system. The tidal energy based TPP is modelled to generate required electrical power. However the inherent dynamic behaviour of TPP largely affects the microgrid system frequency especially in islanded mode of operation. In regard to this to obtain necessary control mechanism in an islanded AC microgrid system , present research article proposes a tilt multistage TDF/(1+TI) controller and to show effectiveness of proposed tilt controller for microgrid control it has been compared with multistage PDF/1+PI and PID controllers. To obtain optimal gain parameters of above implemented controllers an Improved- Moth Flame Optimization (I-MFO) technique has been proposed for this study. To justify viability of proposed I-MFO algorithm its performances have been compared with original MFO algorithm. Finally it has been noticed that to obtain robust frequency control in an islanded AC microgrid system, proposed I-MFO optimized tilt multistage controller exhibits outstanding performance under wind, solar and tidal energy uncertainties.