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The development and use of PV (Photovoltaic), Wind, and Hydro-based Distributed Generation (DG) is presently on the rise worldwide for improving stability and reliability, and reducing the power loss in the distribution system with reduced emission of harmful gases. A crucial issue addressed in this article, due to the increased penetration of DGs, is islanding operations. The detection of islanding is performed by a proposed v&f (voltage and frequency) index method. The reliability indices of the IEEE-33 and 118 radial bus distribution system after the detection of islanding by the proposed method is evaluated by considering the islanding issue as customer interruption. To mitigate the islanding, a reconfiguration strategy using Particle Swarm Optimization (PSO) is also performed and the proposed strategy is also evaluated with the conventional reconfiguration strategy of the distribution system.