In this paper, a smart integrated adaptive centralized controller is proposed for monitoring and controlling integrated renewable energy sources (RESs), both for intentional and unintentional islanding modes of operation for microgrids, as well as, for a variable range of transient load shedding and fault scenarios corresponding to electrical power system outages. It is demonstrated that the proposed smart adaptive controller is capable of instructing fast frequency response by proper coordination of the dispatch of RESs units such as, mini-hydro, Photovoltaic (PV), Battery Energy Storage System (BESS) and standby diesel generators. In particular, the BESS used as power reserve, at the early stage of fault events can prevent detrimental and uncontrollable system frequency decline and the extent of load shedding. In summary, the performance of a centralized controller in terms of a fast frequency response recovery feature is validated for an actual microgrid distribution network of Malaysia. The demonstration of this intelligent control scheme highlights the advantage of utilizing the fast power recovery response of energy storage and standby generator, which fulfil the criteria for minimal load shedding from the main grid, during the unintentional microgrid islanding conditions.