<abstract> <p>Increased use of renewable energy sources in distribution grids has led to the growing concern over unintentional islanding. Among the available islanding detection methods, the passive methods have larger non-detection zones and are susceptible to system faults. However, they have no effect on power quality like active methods. We present a hybrid method for the islanding detection of synchronous generator-based renewable energy sources. Here, the larger non-detection zone issue of the passive islanding detection method was reduced by combining it with a wavelet transform. The rate of change of a voltage unbalanced factor was computed from the sequence components of the renewable energy source terminal voltage. Then, the factor was analyzed using a wavelet transform, and a threshold for the factor was found. The robustness of the method was tested for several islanding as well as non-islanding situations. The efficacy of the method was also tested in multi-source test systems. From the analysis, it was observed that the proposed method was fast, reliable, and had a zero non-detection zone.</p> </abstract>