Electric power systems are undergoing significant changes with the deployment of large-scale wind and solar plants connected to the transmission system and small-scale Distributed Energy Resources (DERs) and microgrids connected to the distribution system, making the latter an active system. A microgrid is a small-scale power system that interconnects renewable and non-renewable generating units such as solar photo-voltaic panels and micro-turbines, storage devices such as batteries and fly wheels, and loads. Typically, it is connected to the distribution feeders via power electronic converters with fast control responses within the micro-seconds. These new developments have prompted growing research activities in stability analysis and control of the transmission and the distribution systems. Unfortunately, these systems are treated as separated entities, limiting the scope of the applicability of the proposed methods to real systems. It is worth stressing that the transmission and distribution systems are interconnected via HV/MV transformers and therefore, are interacting dynamically in a complex way. In this research work, we overcome this problem by investigating the dynamics of the transmission and distribution systems with parallel microgrids as an integrated system . Specifically, we develop a generic model of a microgrid that consists of a DC voltage source connected to an inverter with real and reactive power control and voltage control. We analyze the small-signal stability of the two-area four-machine system with four parallel microgrids connected to the distribution feeders though different impedances. We show that the conventional PQ control of the inverters is insufficient to stabilize the voltage at the point-of-common coupling when the feeder impedances have highly unequal values. To ensure the existence of a stable equilibrium point associated with a sufficient stability margin of the system, we propose a new voltage control implemented as an additional feedback control loop of the conventional inner and outer current control schemes of the inverter. Furthermore, we carry out a modal analysis of the four-machine system with microgrids using Koopman mode analysis. We reveal the existence of local modes of oscillation of a microgrid against the rest of the system and between parallel microgrids at frequencies that range between 0.1 and 3 Hz. When the control of the microgrid becomes unstable, the frequencies of the oscillation are about 20 Hz. Recall that the Koopman mode analysis is a new technique developed in fluid dynamics and recently introduced in power systems by Suzuki and Mezic. It allows us to carry out small signal and transient stability analysis by processing only measurements, without resorting to any model and without assuming any linearization.