A high gain two-phase interleaved coupled inductor-based DC-DC converter step-up low input voltage sources like PV array and fuel cell in distribution generation system (DGS). The converter operates for a wide range of load changes when it is part of DGS. At light load, the converter operates in discontinuous conduction mode (DCM). A small-signal model (SSM) is required in both continuous conduction mode (CCM) and DCM to know the complete dynamic behavior of the converter. Steady-state and small-signal analysis of the two-phase interleaved coupled inductor boost converter (ICIBC) is quite complex when the converter operates in DCM. This paper presents the complete derivation of SSM of a two-phase ICIBC-based high step-up gain converter in DCM. The conditions of the converter operating in DCM are discussed. The small-signal model of two-phase ICIBC is derived using the state-space averaging method. The control-to-output voltage transfer function and steady-state voltage gain of the two-phase ICIBC are derived. When the converter operates in DCM, it eliminates the right half plane zero from the control-to-output voltage transfer function. Thus, it improves bandwidth and stability margin. Thus, single loop voltage control is sufficient to achieve regulated output voltage with faster response for all operating ranges of DCM. The laboratory prototype of two-phase ICIBC is implemented to step-up 24 V to 100 V at a power level of 300 W. The experimental results of two-phase ICIBC are obtained in DCM and CCM with step-change in load to validate the derived small-signal model.