The concept of integration of distributed energy resources for formation of microgrid will be most significant in near future. The latest research and development in the field of microgrid as a promising power system through a comprehensive literature review is presented in this paper. It shows a broad overview on the worldwide research trend on microgrid which is most significant topic at present. This literature survey reveals that integration of distributed energy resources, operation, control, power quality issues and stability of microgrid system should be explored to implement microgrid successfully in real power scenario.