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This paper presents an optimal decentralized control system for an isolated, networked dc microgrid with multiple sources and composite loads. The key feature of the proposed controller is that it requires only locally measurable states for controlling the local generation while achieving global stability. The controller is designed to minimize a performance index accounting for voltage regulation and branch current regulation with improved dynamics and stability. Decentralized control guarantees high reliability and modularity of the microgrid enabling plug-and-play operations of new units with little modifications. The solution of optimal decentralized control is obtained through constrained parameter optimization technique. The designed controller ensures stability over extended operating conditions of load and droop changes. This leads to a unique robust control law for the dc microgrid that obviates the need for frequent change of controller settings for any change in system parameters. Modal analysis and time-domain simulation of the controlled system substantiate robustness and effectiveness of the proposed decentralized control system in improving the system dynamic performance and optimal set point tracking with a unique controller configuration. [ABSTRACT FROM AUTHOR]