In an islanded microgrid composed of multiple droop controlled parallel distributed generators (DGs), the bus voltage and frequency are likely to drop, which is harmful for the operation of some sensitive loads and would trigger system protection in some extreme cases. To address this issue, a distributed voltage and frequency restoration method for islanded microgrid is proposed. A low-bandwidth, unidirectional ring-like communication network is used in the proposed distributed control to reduce the communication burden. With this, the voltage and frequency compensation terms, which are able to come to consensus in steady states, are added to droop equations. Consequently, AC bus voltage and frequency are able to approach their nominal values. The system structure and the operational principle of the proposed distributed control method are analyzed in detail, followed by which the validity and feasibility of the proposed method is verified via simulations.