It is well known that the dynamic interaction between Distributed Generators (DG) and loads in a microgrid (MG) results to unstable behavior depending on the type of load being connected. Stability of AC-MG is influenced by high penetration of tightly regulated power converters used to interface distributed resources and loads. In this case, load converters behave as constant power loads (CPL) and introduce a negative incremental resistance feature which reduces the system stability. The objective of this paper is to address the Large-Signal stability analysis of AC microgrid and to understand the effect of each type of load in MG stability.