This paper proposes a load shedding model for the island microgrid based on the ranking of loads and the power stability index (PSI). Loads are ranked based on the improved analytic hierarchy process (AHP) algorithm. Real-time measurement systems have the function of collecting data for very important, important, and less-important loads at each bus load. From this data, the improved AHP method is applied to rank the loads. The advantage of this method is that the subjectivity is eliminated and not depending on the expertise of the system operator when implementing the traditional AHP method. Besides, the minimum amount of load shedding power is calculated, taking into account both primary and secondary control methods. The objective is to minimize the impact on power consumers and ensure that the frequency returns to an acceptable range. In addition, when implementing load shedding, voltage quality, and stability are considered. The PSI serves as a crucial parameter for assessing the voltage stability of microgrid buses. This index is combined with load ranking weights to obtain combined weights for the load shedding plan. Consequently, the proposed load shedding plan prioritizes minimizing damage to customers, improving voltage quality and stability, and ensuring frequency is within permissible limits. The 16-bus microgrid system is applied to compare with traditional methods and to prove the efficiency of the suggested technique.