Reliable protection, communication and control are the key features of a digital protection scheme in a utility substation. Microgrid is an alternative solution of installing long Transmission & Distribution lines could be cost prohibitive. There are number of Intelligent Electronic Devices (IEDs) which could find applications in controlling and monitoring of power network in a Microgrid set up and one such device is Phasor Measurement Unit (PMU). It is a microprocessor based intelligent device which gathers high-resolution data, checks the power quality and records disturbances. However, few issues that remains to be addressed such as, interoperability in a multi-vendor equipment and coordination between individual control systems in an integrated scheme. In this paper, an Operational Network Technology (OPNET) software model of a PMU has been designed and tested for its performance in a Microgrid environment based on IEC 61850-90-5 standard.