This paper presents design of interleave configured dc-dc converter for high power distributed power system applications. The multi channel interleaving buck converter with small inductance has proved to be suitable for micro-grid, requiring medium output voltages, high output currents and fast transient response. Integrated magnetic components are used to reduce the size of the converter and improve efficiency. Unlike conventional methods, the distributed approach requires no centralized control, automatically accommodates varying numbers of converter cells, and is highly tolerant of subsystem failures. A general methodology for achieving distributed interleaving is proposed, along with a specific implementation approach. The design and simulation verification of switching frequency 10 kHz system is presented with interleaved clocking of the converter cells. The simulation (simulated by PSIM 6.1) results corroborate the analytical predictions and demonstrate the tremendous benefits of the distributed interleaving approach.