Maintaining voltage and frequency stability in an islanded microgrid is challenging, due to the low system inertia. In addition, islanded microgrids have limited generation capability, requiring that all DGs contribute proportionally to meet the system power consumption. This paper proposes a distributed control algorithm for optimal apparent power utilization in islanded microgrids. The developed algorithm improves system apparent power utilization by maintaining proportional power sharing among DGs. A decentralized platform called Resilient Information Architecture Platform for Smart Systems (RIAPS) is introduced that runs on processors embedded within the DGs. The proposed algorithm is fully implemented in RIAPS platform and validated on a real-time microgrid testbed.