Abstarct: Recently, the application of distributed generation baxsed on the use of renewable energy sources in the power network has been increased and the concept of microgrid as a regular structure has been accepted to integrate the distributed generation sources. The integration of distributed generation sources is facing with a variety of issues such as power sharing control in the islanded operation mode of microgrid. One of the power sharing control methods among the distributed generations in a microgrid is control the droop characteristics for each resource. Therefore, this thesis has investigated the power sharing in the islanded microgrid with inverter baxsed distributed generation resources so that each source is controlled by the conventional droop method. The conventional droop method is able to relize the accurate real power sharing while reactive power sharing using this method is performed inaccurately. Inaccurate reactive power sharing is due to impedance mismatch of distributed generation feeders and it also can cause the flowing the circulating current among the distributed generation sources in the microgrid. So, in this study, the effect of virtual impedance in power sharing has been studied. In order to compensate the feeders' impedance mismatch the virtual impedance baxsed method has been presented for two cases of fixed and adjustable virtual impedance. Also, in this study, the effect of resistance to reactance ratio of the feeders and load model in the presented method in compensating the impedance mismatch of feeders has been investigated. The proposed method has been simulated on a typical test system in PSCAD/EMTDC software. The simulation results show that the proposed method is fully capable to share the reactive power accurately with compensating the feeders' impedance mismatch. The simulation results also indicate that the circulating currents among the resources is reduced using the proposed method.