Renewable sources of energy are used extensively in the distribution grid to meet the need for growing electricity demand and to resolve the global heating crisis caused by traditional energy sources. They offer many advantages like better efficiency, power quality, and lower air pollution. One of the vital issues with these integrations is islanding condition arising due to the sudden disconnection of grid because of some abnormal situations; however, the distributed generation (DG) retains the power supply to the local loads. Thus, efficient detection of islanding and quick detachment of DG are vital to prevent failure of equipments, grid safety disruption, and risks to personnel safety. In this context, this article represents a comprehensive review of islanding issues and different islanding detection methods (IDMs) that provide a detailed assessment for filling the research gap and thereby highlights the various issues related to island detection. A broad classification of IDMs is established based on the conventional and modern techniques such as local (Active, Passive & Hybrid) and remote IDMs with their detailed illustrations including both intelligent and signal processing-based IDMs. Comparison of various IDMs based on their merits, demerits, and various performance analysis including the non-detection zone, detection time, quality factor, power quality, effect on a microgrid, implementation cost, and applicability in multi-DG system is provided. Hence, this review will provide an insight for the new researchers interested in the area highlighting the different islanding detection techniques with their relative merits and demerits.