In this paper, a virtual synchronous generator (VSG) controller is applied to a hybrid energy storage system (HESS) containing a battery energy storage system and supercapacitor storage system for maintaining the frequency stability of an isolated microgrid. The microgrid contains a photovoltaic generation system and a diesel generator in addition to the HESS and two constant impedance loads that are fed through a medium voltage radial feeding system. The adaptive virtual inertia constant (H) with constant virtual damping coefcient (D) based on‘ bang-bang’ control for the microgrid’s frequency stability enhancement is investigated and compared with the constant parameter VSG. In addition, the bang-bang control is modifed to adapt the D beside the adaptive H, and the system response is investigated and compared with the conventional adaptive H technique. The VSG parameters are evaluated based on two diferent methods. The frst is a computational method based on the simplifed small signal stability analysis, while the other is based on an optimization method using two diferent objective functions and the particle swarm optimization technique. This paper also investigates the superiority of the proposed technique compared to other techniques in enhancing frequency stability, accelerating steady-state frequency restoration, and reducing the energy requirement of the HESS. The required power from the HESS is shared between the two energy storages using the low pass flter technique so as to reduce battery peak current