An islanding detection and protection method of a parallel-type power converter is proposed, which performs perturbation to a power system to detect the frequency of the system voltage and the variation of the magnitude of the negative-sequence voltage as the basis for deciding the occurrence of an islanding operation. When the system operates normally, the frequency or phase and magnitude of the system voltage and the magnitude of the negative-sequence voltage won't be affected by the perturbation. On the other hand, if an islanding operation occurs, this perturbation will cause an apparent drift of the frequency or phase and magnitude of the system voltage and the magnitude of the negative-sequence voltage. Through detection of this apparent drift, the perturbation can be amplified by means of positive feedback to quickly detect the islanding operation phenomenon and trigger the protection mechanism.