A microgrid is a discrete power system that can operate either in grid connected or islanded mode. The proper control is essential to obtain more efficient, stable, and reliable microgrid. When a fault occurs in the main grid, microgrid should be disconnected from it to protect its components and continuously supply the critical loads by means of intelligent control techniques. In this study, predictive load shedding algorithm for islanded AC microgrid is presented in order to maximize the system reliability against the unpredicted faults in the main grid. The proposed method has been validated through hardware-in-the-loop (HIL) tests.