The main causes of frequency instability or oscillations in islanded microgrids are unstable load and varying power output from distributed generating units (DGUs). An important challenge for islanded microgrid systems powered by renewable energy is maintaining frequency stability. To address this issue, a proportional integral derivative (PID) controller is designed in this article. Firstly, islanded microgrid model is constructed by incorporating various DGUs and flywheel energy storage system (FESS). Further, considering first order transfer function of FESS and DGUs, a linearized transfer function is obtained. This transfer function is further approximated into first order plus time delay (FOPTD) form to design PID control strategy, which is efficient and easy to analyze. PID parameters are evaluated using the Chien-Hrones-Reswick (CHR) method for set point tracking and load disturbance rejection for 0% and 20% overshoot. The CHR method for load disturbance rejection for 20% overshoot emerges as the preferred choice over other discussed tuning methods. The effectiveness of the discussed method is demonstrated through frequency analysis and transient responses and also validated through real time simulations. Moreover, tabulated data presenting tuning parameters, time domain specifications and comparative frequency plots, support the validity of the proposed tuning method for PID control design of the presented islanded model.