This dissertation presents dynamic reactive power control of isolated power systems. Isolated systems include MicroGrids in islanded mode, shipboard power systems operating offshore, or any other power system operating in islanded mode intentionally or due to a fault. Isolated power systems experience fast transients due to lack of an infinite bus capable of dictating the voltage and frequency reference. This dissertation only focuses on reactive control of islanded MicroGrids and AC/DC shipboard power systems. The problem is tackled using a Model Predictive Control (MPC) method, which uses a simplified model of the system to predict the voltage behavior of the system in future. The MPC method minimizes the voltage deviation of the predicted bus voltage; therefore, it is inherently robust and stable. In other words, this method can easily predict the behavior of the system and take necessary control actions to avoid instability. Further, this method is capable of reaching a smooth voltage profile and rejecting possible disturbances in the system. The studied MicroGrids in this dissertation integrate intermittent distributed energy resources such as wind and solar generators. These non-dispatchable sources add to the uncertainty of the system and make voltage and reactive control more challenging. The model predictive controller uses the capability of these sources and coordinates them dynamically to achieve the voltage goals of the controller. The MPC controller is implemented online in a closed control loop, which means it is self-correcting with the feedback it receives from the system.