A decentralized nonlinear model and controller is proposed to stabilize the interconnected small-scale islanded dc grids in the presence of renewable energy sources with proven stability in this paper. The dc interconnected network comprises dc sources along with resistive and constant-power loads (CPLs). Though the dc sources are photovoltaic (PV) in this paper, the proposed controller can be applied to other types of low-inertia intermittent sources as well. All sources and/or CPL loads are connected to the grid through simple dc-dc converters (DDCs) to avoid power electronic complexities. The negative-resistance CPLs can destabilize the grid in the presence of the DDC dynamical components. The decentralized nonlinear output-feedback controller mitigates rapid voltage and power oscillations caused by the disturbances and measurement noises, and stabilizes the grid. Since the proposed output-feedback controller needs only partial knowledge of the local converter states, the number of measure points reduces leading to a simple implementation. Simulation results on a small-scale dc grid are provided to show the performance of the proposed controller.