Controlled islanding is a final resort for preventing a cascading event and/or a large area blackout. So far, the ordered binary decision diagram and slow coherency have been employed to optimize one islanding scheme for the faults in all buses. Thus, a new controlled islanding method based on power flow tracing is presented for identifying different islanding schemes with minimal power imbalance or minimal power disruption for the faults in different buses. Then, the transient stability of the split islands is assessed and the comparison of islanding schemes with minimal power disruption and minimal power imbalance is also performed. Finally, the New England 10-generator 39-bus power system is used for demonstrating the proposed power flow tracing islanding method and the comparison of islanding schemes optimized by two different optimization functions.