To implement renewable energy resources, microgrid systems have been adopted and developed into the technology of choice to assure mass electrification in the next decade. Microgrid systems have a number of advantages over the conventional utility grid systems, however, it faces severe instability issues due to continually increasing constant power loads. To improve the stability of the entire system, load side compensation technique is chosen because of its robustness and cost effectiveness. In this particular occasion, a sliding mode controller is developed for microgrid system in the presence of CPL to assure certain control objective of keeping the output voltage constant at 480V. After that, the robustness analysis of the sliding mode controller against parametric uncertainties is presented. The sliding mode controller robustness against parametric uncertainties, frequency variations, and additive white Gaussian noise (AWGN) are illustrated in this paper. Later, the performance of the PID and sliding Mode controller is compared in case of nonlinearity, parameter uncertainties, and noise rejection to justify the selection of Sliding Mode controller over PID controller. All the necessary calculations are reckoned mathematically and results are verified in the virtual platform such as MATLAB/Simulink with the appreciable outcome.