This paper presents an internal model control (IMC) strategy for an inverter-based autonomous microgrid (MG) considering time delay. The system is modeled with two parallel inverters connected with multiple linear loads and incorporates communication delay associated with measurement blocks. The IMC controller is properly tuned with the help of a filter. parameter and utilized to control active and reactive power sharing. Furthermore, the time delay is modeled using Pade. approximation and the test system is investigated with uniform and non-uniform delay. The key performance indicators, like Overshoot, steady-state accuracy, and settling time demonstrate that the IMC controller provides better mitigation of high-frequency oscillations under both uniform and non-uniform delay. The proposed model efficacy is compared with a conventional controller, and the results indicate that IMC application in distributed energy systems mitigates high-frequency oscillations associated with inherent time-delays.