The study investigates the impact of virtual synchronous generator (VSG) on stability delay margins of a micro-grid (MG) including communication time delay. MG central controller (MGCC) through various communication links is employed to regulate the system frequency. The usage of the communication networks in MGs causes time delays that degrade the performance of the controller and lead to undesired oscillations in the system frequency. Therefore, for a stable operation, it is essential to compute the upper bound of time delay known as stability delay margin for the MG considering VSG, which provides virtual inertia and damping support and operates like a real synchronous generator. By implementing a simulation approach, this paper aims to determine stability delay margins for a wide range of the proportional-integral (PI) controller gains of the MG with VSG. Results indicate that VSG increases the stability delay margins and improves stability and performance of the MG.