This paper proposes an optimal distributed control strategy for the coordination of multiple distributed generators in an islanded microgrid (MG). A finite-time secondary frequency control approach is developed to eliminate the frequency deviation and maintain accurate active power sharing in a finite-time manner. It is demonstrated that the traditional distributed control approach with asymptotical convergence is just a special case of the proposed finite-time control strategy under the specific control parameter settings. Then, a secondary voltage control approach is presented to regulate the average voltage magnitude of all distributed generators to the desired value and achieve accurate reactive power sharing. The implementation of the proposed distributed control strategy only requires information exchange among neighboring local controllers through a sparse communication network. Simulations with an islanded MG testbed built in MATLAB/Simulink are conducted to validate the effectiveness of the proposed distributed control strategy.