Renewable Energy Sources (RES) are widely used in Microgrids (MG) which cause frequency stability issues related to less system inertia and instability during islanding mode of operation. The addition of new grid components like home grid, smart homes, home to public grids, etc., can be utilized to solve the frequency stability related issues in Smart Hybrid Power Systems, consisting of Microgrids and smart homes. This work mainly focuses on the possibility of utilizing Smart Home Inverters (SHI) for frequency regulation in coordination with other distributed frequency control loops. In this paper, distributed control loops for Reheat Thermal Power System (RTPS) for primary and secondary frequency control, Virtual Inertia loop for Wind Turbine Generator (WTG), cascaded droop PI-PD for MG sources and cascaded droop PID controlled SHI are developed and coordinated to achieve minimum frequency deviation during Grid-connected mode and to obtain successful operation during islanding mode using MATLAB/SIMULINK.