A system and method of dynamic distributed control with network topology discovery in an isolated distribution grid is provided. Source modules connect to AC generators and output high voltage DC power on ports. Load modules receive the high voltage DC power on connected ports and convert the DC power to AC power. Loads are connected to AC outlets on load modules. A source module discovers the connected network topology through a series of states following the reading of a configuration file. Each module has a microprocessor. Each microprocessor runs control algorithms using its adjacency map as input. Respective adjacency maps are monitored, compared, and amended as needed to maintain consistency across all adjacency maps, thus ensuring consistent distributed control of the power distribution grid.