It is well known that the Conventional Droop method is commonly used to share real and reactive power between distributed Generation interfaced converters (DICs) based Islanded microgrid. The share of power is done autonomously without communication between Converters. Despite the lot of desirable features the Droop method had, there exist some limitations concerning the accuracy of the reactive power shared between converters when line impedance mismatches exist. This paper presents the droop control law for islanded microgrid, and proposes an online state estimation of the point of common coupling (PCC) voltage, which is then used as a feedback signal for the Droop control to accurately share the power between parallel converters. Thus the proposed method keeps the advantages of the Droop control method to manage the power between distributed generations in autonomous fashion without additional communication links.