Abstract: In order to improve the performance of frequency regulation and power optimization for microgrid, a two-layer control structure is proposed, in which the primary control converts the traditional power-frequency droop into the power-increment factor droop to accommodate this structure. The secondary control uses a consensus protocol to achieve the goals of frequency synchronization, frequency no-difference and power optimization in a distributed manner. In addition, it is found that if only the saturator is used for power constraint, it will lead to conflicts between frequency regulation and power optimization. To solve this conflict, a corresponding power constraint control method is proposed. The stability of the proposed control strategy in the system is demonstrated by the Lyapunov direct method. Finally, the effectiveness of the strategy is verified by a simulation example of 5-node islanded microgrid.