With the high integration of power electronic technologies in microgrids, the reliability assessment considering power electronic devices has become a hot topic. However, so far no research has considered the impact of the operation failure probability of power electronic equipment on the overall reliability of the microgrid. This paper aims to construct a holistic operation failure rate model of power electronic systems based on the overall reliability assessment of islanded microgrid with high penetration of renewable energy sources (RESs). In addition, to improve the reliability of islanded microgrid, the conventional battery energy storage system (BESS) is replaced by the hybrid energy storage system (HESS). Based on the proposed model, the operation failure models for the power electronic modules in microgrid are built and tested, and then the sensitivity analysis is performed for exploring the influence of various factors on the reliability of the microgrid.