Microgrid has several advantages over the conventional utility grid system, thus naturally being the gateway to implement the renewable energy resources. Now it is considered as the primary solution to solve the next generation power demand. However, in practice, it is very challenging to retain the microgrid operational stability due to the dense presence of constant power loads in the system. In this article, we considered a technique of compensating the load side to mitigate the instability issues introduced by CPL. Adopting this technique, a stability analysis was presented here for MIMO (multiple input, multiple output) AC microgrid system in dq axis platform by Popov Absolute Stability Criterion using the sector conditions and Popov plots. Besides the recent researches regarding the microgrid stability techniques and the previous analysis using Popov Absolute Stability Criterion, the modeling of the energy storage-based load side compensated microgrid system is also provided in this article. All the cases and results are rigorously scrutinized in virtual platform such as MATLAB/Simulink and verified through experimental results as well.