Islanding detection is required for both microgrids and individual distributed generations (DGs). Several methods exist in literature but they are with some limitations. In this paper a new scheme is proposed which doesn't fall under any of the existing methods. Cross coupling in control action between the components Id (direct axis component) and Iq (quadrature axis component) is introduced by a novel method which makes the system unstable in islanded mode. The coupling is such a way that it does not adversely affect the control system dynamics in grid connected mode. The proposed method does not induce power quality problems and has no Non-Detection Zone (NDZ). Small signal stability analysis and Simulink simulation are performed to find the effectiveness of this scheme for a worst case scenario. © 2014 IEEE.