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Controlled power converters have found many applications in the power industry during the last decade. Virtual synchronous generator (VSG) is a truly good example of these converters that can be used to induce desired dynamics to the network. Despite the excellent performance of VSGs in balanced conditions, they do not carry the flexibility to suppress unbalanced components. To deal with this conflicting issue, a decoupled double synchronous reference frame-based VSG is proposed in this paper. Applying this method to the VSG structure under unbalanced voltage conditions by decoupling the positive and negative components, the oscillating terms are mostly eliminated, and DC values are extracted with the aim that the controllers can perform better. The benefits of the proposed scheme include higher accuracy, better controllability, effective component separation, and robust performance under heavy load conditions. The simulation results prove the validity and effectiveness of the proposed strategy against traditional VSG and previous techniques presented to enhance VSGs under unbalanced conditions in an islanded microgrid. [ABSTRACT FROM AUTHOR]