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This work proposes the use of fuzzy-logic-based voltage frequency control (VFC) and adaptive inertia to improve the frequency response of a virtual synchronous generator (VSG)-based isolated microgrid system. The joint VFC and inertial control scheme is proposed to limit frequency deviations in these isolated microgrid systems, mainly caused by the increasing penetration of intermittent distributed energy resources, which lack rotational inertia. The proposed controller uses artificial neural networks (ANN) to estimate the exponent of voltage-dependent loads and modulate the system frequency by adjusting the output voltage of the VSGs, which increases the system’s active power reserves while providing inertial control by adjusting the inertia of VSGs to minimize frequency and VSG DC-link voltage excursions. A genetic algorithm (GA)-based optimization strategy is developed to optimally adjust the parameters of the fuzzy logic controller to diminish the impact of disturbances on the system. In addition, the proposed technique is illustrated through simulations within the framework of a test system based on the CIGRE medium-voltage benchmark under various circumstances. The results of these simulations demonstrate that the proposed control strategy outperforms existing methods.