A microgrid is an independent power system that can be connected to the grid or operated in an islanded mode. This single grid entity is widely used for furthering access to energy and ensuring reliable energy supply. However, if islanded, microgrids do not benefit from the high inertia of the main grid and can be subject to high variations in terms of voltage and frequency, which challenge their stability. In addition, operability and interoperability requirements, standards as well as directives have addressed main concerns regarding a microgrid’s reliability, use of distributed local resources and cybersecurity. Nevertheless, microgrid systems are quickly evolving through digitalization and have a large range of applications. Thus, a consensus over their testing must be further developed with the current technological development. Here, we describe existing technical requirements and assessment criteria for a microgrid’s main functionalities to foster harmonization of functionality-level testing and an international conception of system-level one. This framework is proposed as a reference document for assessment frame development serving both microgrid research and implementation for a comprehensive understanding of technical microgrid performance and its current assessment challenges, such as lack of standardization and evolving technology.