This paper presents a heuristic approach to address the restoration of droop-controlled islanded microgrids (DCIMGs) in the event of a sectionalising switch (SS) failure. The proposed approach consists of two-step procedures to ensure the smooth operation of the network. First, a faulty SS is isolated by replacing it with a tie switch (TS) that acts as an SS. Then, the switching configuration is adjusted to improve the performance of DCIMGs. To assess the efficacy of the proposed approach, the 33-bus and 118-bus DCIMG test networks are considered. For fulfilling the load demand in each DCIMG, droop-controlled DGs (DDGs) and renewable DGs (RDGs) are employed. Along with satisfying load demand, DGs decrease the power loss and voltage drop. Additionally, shunt capacitor banks (SCBs) are also incorporated into the DCIMG to improve the voltage profile. In conjunction with the load flow analysis, the power injection of the DDGs are determined using the modified Newton–Raphson method. For determining the power injection of RDGs and the size of SCBs, particle swarm optimisation method is implemented. The paper investigates the effectiveness of the proposed method for resolving SS faults in DCIMGs over a 24 hour period amidst hourly demand and renewable power generation variation. By employing Hong’s 2m+1 point estimate method, the uncertainties associated with load demands and renewable power generation are also considered. The effectiveness of the issue formulation is verified using MatLabR2023b. With the proposed method, the voltage and frequency can be effectively maintained after the network is restored following a fault.