Nowadays, renewable energy sources (RESs) are widely used as distributed generation sources, leading to issues such as unintentional islanding, protection concerns, and reverse power flow. Unintentional islanding is dangerous because it can endanger utility workers, damage DG units, and jeopardize grid stability. To overcome these issues, Researchers are developing islanding detection schemes. This article proposes a novel passive technique for islanding detection of multi-bust test systems, based on the differential impedance of a series inductor. The differential impedance changes during islanding and non-islanding events. However, in grid-connected mode, the voltage and frequency of the microgrid are handled by the utility grid. Therefore, no significant changes in differential impedance occur. The voltage and frequency of the microgrid are not handled by the power grid while in islanded mode. Therefore, the differential impedance varies significantly. The islanding is detected if the value of differential impedance is greater than the predefined threshold. This scheme detects islanding in 24 ms at zero mismatch power, has no impact on power quality, and is computationally simple. The proposed approach easily discriminates between islanding and non-islanding events. The distribution test system is simulated in MATLAB/Simulink environment. Additionally, the novel passive technique has been validated on an OPAL-RT real-time platform.