This paper proposes a new method for solving the power flow problem (PFP) in droop-controlled islanded microgrids (DCIMGs). The method is utilizing the conventional power flow (CPF) solution methods. A virtual slack bus (VSB) including a dummy generator/load (DGL) is set to fulfill the necessity of using the CPF methods. This bus emulates the treatment of the main grid for fulfilling the load demand to equalize the production and consumption in the microgrid and maintaining constant the frequency. Solving the problem is done to tend injective active and reactive powers to zero by DGL, which is expressing the islanded operation properties of the microgrid which is solved by an iterative process. The system frequency and the VSB’s voltage magnitude are adjusted in this iterative process simultaneously. The proposed method is applied to a small 7-bus system and a big 41-bus system. Validation of the developed method is performed using the obtained results comparing with the steady-state results of time-domain (TD) simulations by PSIM. Besides the accuracy and computational burden of the required calculation is compared with (modified Newton-Raphson) MNR and the other relevant iterative methods.