A large scale embedded generator or a micro-grid is usually interconnected to the grid through the dedicated line. Immediately after the removal of the grid supply, it must be disconnected and remain disconnected until the normal grid supplies are restored. This paper proposes an islanding detection algorithm based on complex power at the intertie. Complex power at the intertie delivered to the grid has a value depending on power flow during normal operation. When loss of mains occurs, complex power at the intertie moves to a value depending on the parameters of the dedicated line. The performance of the proposed algorithm was investigated under various operating and fault conditions. The proposed algorithm can detect an islanding operation even if no power is exchanged prior to loss of mains and discriminate the fault condition from islanding.