System and method for synchronizing and interleaving power modules

For use in a distributed power system having first and second power processing modules, a power processing module for, and method of synchronizing an operation of the second power processing module with the first power processing module and a power converter employing the power processing module or the method. In one embodiment, the power processing module includes: (1) a synchronization input terminal adapted to receive a first control signal, (2) a free-running oscillator that generates a gate drive signal for controlling a switch of the power processing module, the gate drive signal having a frequency that is a free-running frequency of the power processing module, (3) a synchronization circuit, coupled to the synchronization input terminal and the free-running oscillator, that synchronizes the gate drive signal with the first control signal and (4) a frequency setting circuit, coupled to the synchronization input terminal and the free-running oscillator, that modifies an operation of the free-running oscillator.