This paper proposes an innovative internet of things (IoT) based communication framework for monitoring microgrid under the condition of packet dropouts in measurements. First of all, the microgrid incorporating the renewable distributed energy resources is represented by a state-space model. The IoT embedded wireless sensor network is adopted to sense the system states. Afterwards, the information is transmitted to the energy management system using the communication network. Finally, the least mean square fourth algorithm is explored for estimating the system states. The effectiveness of the developed approach is verified through numerical simulations.