A microgrid with parallel structure operating under islanded mode is considered in this paper. Under microgrid islanded operation mode, lines bring adverse effect for power distribution between microsources (MSs). Because traditional droop control ignores this effect, MSs adopting this method can not achieve satisfactory power distribution. A kind of droop control including line compensation applied to this microgrid is proposed. It can eliminate this effect to obtain satisfactory power distribution. The relationship of two kinds of droop control with power distribution is analyzed. The reference voltage generated by droop control is applied to control output voltage of MSs. Comparison of two kinds of droop control through MATLAB/Simulink simulation is made to verify the superiority of droop control including line compensation for power distribution. The relationship between PCC voltage and output power of MSs is also presented.