A microgrid is a small scale power system. The microgrid is operated in two operation modes, the grid-connected mode and the islanded mode. In the islanded mode, the frequency of a microgrid should be maintained constantly. For this, the balance between power supply and power demand during islanded mode should be met. In general, energy storage systems (ESSs) are used to solve power imbalance. In this paper, the frequency control effect of a Lithium-ion battery energy storage system (Li-ion BESS) has been tested on the hardware-in-the loop simulation (HILS) system environment.