Microturbines system (MTS) are currently being deployed as small scale on-site distributed generators for microgrids and smart grids. In order to fully exploit DG potentialities, advanced integrated controls that include power electronics facilities, communication technologies and advanced modeling are required. Significant expectations are posed on gas microturbines that can be easily installed in large commercial and public buildings. Modeling, control, simulation of microturbine generator based distributed generation system in smart grid application of buildings for both grid-connected and islanding conditions are presented. It also incorporates modeling and simulation of MT with a speed control system of the MT-permanent magnet synchronous generator to keep the speed constant with load variation. Model and simulations are performed using MATLAB, Simulink and SimPowerSystem software package. The model is built from the dynamics of each part with their interconnections. This simplified model is a useful tool for studying the various operational aspects of MT and is also applicable with building cooling, heating and power (BCHP) systems