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The dynamic performance of a microgrid is governed by the decentralized primary control strategy that is embedded in each of its hosted Distributed Energy Resource (DER) units. The primary control computes the voltage synthesized by the interfacing voltage-sourced converter such that the DER unit contributes active and reactive powers in support of the microgrid voltage amplitude and frequency. These operational requirements must be satisfied with respect to the converter safety and physical limitations, such as the limited magnitude of the converter output current and terminal voltage. In this paper, all the control requirements mentioned above are taken into account in a single constrained optimization problem using the framework of Model-based Predictive Control (MPC). Solving the primary control problem in this way allows the microgrid to respond to major disturbances such short-circuit faults and transitions between modes of operation, while the electronically-interfaced DER units operate within operational and safety limits. [ABSTRACT FROM AUTHOR]