arXiv:2610.41538v1 Announce Type: new Abstract: Islanded power systems are inherently challenging to operate due to limited interconnection, low inertia, and weak short-circuit strength. As renewable and inverter-based resources replace synchronous machines, these challenges worsen, causing faster frequency deviations, greater voltage volatility, and higher risk of instability. This report summarizes the differences between islanded and interconnected systems and reviews key stability issues in islanded grids: frequency stability, converter-driven interactions, voltage stability, large-disturbance behavior, and small-signal dynamics. Grid-forming (GFM) voltage source converters are a promising solution because they can establish voltage and frequency, emulate synchronous machine behavior, and provide grid strength, virtual inertia, fast frequency response, voltage regulation, and black-start capability. The report examines relevant GFM control strategies and evaluates their capabilities in weak, low-inertia islanded grids. Challenges remain, particularly interoperability, control coordination among multiple inverter-based resources, lack of standardized grid code requirements, and coordination of protection devices. Successful deployment requires advances in interoperability, harmonized grid codes, and grid planning that considers the unique features of islanded systems, along with clear GFM functionality requirements. Finally, a case study illustrates the stability-enhancing capability of GFM converters in weak grids through small-signal stability analysis. Overall, GFM technology is a key enabler of reliable, renewable-dominant island power systems, but broader adoption depends on continued technical and regulatory development.