This paper investigates the characteristics of the active and reactive power sharing in a parallel inverters system under different system impedance conditions. The analyses conclude that the conventional droop method cannot achieve efficient power sharing for the case of a system with complex impedance condition. To achieve the proper power balance and minimize the circulating current in the different impedance situations, a novel droop controller that considers the impact of complex impedance is proposed in this paper. This controller can simplify the coupled active and reactive power relationships, which are caused by the complex impedance in the parallel system. In addition, a virtual complex impedance loop is included in the proposed controller to minimize the fundamental and harmonic circulating current that flows in the parallel system. Compared to the other methods, the proposed controller can achieve accurate power sharing, offers efficient dynamic performance, and is more adaptive to different line impedance situations. Simulation and experimental results are presented to prove the validity and the improvements achieved by the proposed controller.