This paper proposes a fully distributed control methodology for secondary control of ac microgrids. The control framework includes three modules: 1) voltage regulator; 2) reactive power regulator; and 3) active power/frequency regulator. The voltage regulator module maintains the average voltage of the microgrid distribution line at the rated value. The reactive power regulator compares the local normalized reactive power of an inverter with its neighbors’ powers on a communication graph and, accordingly, fine-tunes Q-V droop coefficients to mitigate any reactive power mismatch. Collectively, these two modules account for the effect of the distribution line impedance on the reactive power flow. The third module regulates all inverter frequencies at the nominal value while sharing the active power demand among them. Unlike most conventional methods, this controller does not utilize any explicit frequency measurement. The proposed controller is fully distributed; i.e., each controller requires information exchange with only its neighbors linked directly on the communication graph. Steady-state performance analysis assures the global voltage regulation, frequency synchronization, and proportional active/reactive power sharing. An ac microgrid is prototyped to experimentally validate the proposed control methodology against the load change, plug-and-play operation, and communication constraints such as delay, packet loss, and limited bandwidth.