Recently, a new islanding detection scheme based on power electronic signaling technology has been proposed in the literature. By broadcasting a signal on the distribution feeders from the substation to the down-stream DGs, the absence of the signal at the DG site will be a sign of islanding. The scheme is more reliable than regular local detection techniques while it costs much less than transfer trip schemes. As the checking of the signal continuity is done via signal detectors, performance analysis of implemented detection algorithms is one of the main concerns. Since, the scheme relies on distortion broadcasting, our purpose is to answer the first question arises i.e., `` Is it a reliable scheme for DGs located at industrial areas that are rich in harmonics and interharmonics? ". Results show that for spectral based detection algorithms, more selective thresholds must be set in case of excessive interharmonic pollutions.