The aim of this paper is to monitor the performance of distributed generation (DG) units in a microgrid by considering the interfacing converters to ensure efficient power distribution within the microgrid. A microgrid model that integrates virtual impedances with a phase-locked loop (PLL) is introduced, followed by a novel method for small-signal stability analysis of the microgrid. A virtual impedance tuning strategy is developed using the Modified Honey Bee Mating Optimization (MHBMO) algorithm. Simulation was performed using MATLAB/Simulink software, and results demonstrated that the microgrid voltage and frequency remained within acceptable limits, and the microgrid stability index was significantly improved.