For microgrid in islanded operation, due to the effects of mismatched line impedance, the reactive power could not be shared accurately with the conventional droop method. To improve the reactive power sharing accuracy, this paper proposes an improved droop control method. The proposed method mainly includes two important operations: error reduction operation and voltage recovery operation. The sharing accuracy is improved by the sharing error reduction operation, which is activated by the low-bandwidth synchronization signals. However, the error reduction operation will result in a decrease in output voltage amplitude. Therefore, the voltage recovery operation is proposed to compensate the decrease. The needed communication in this method is very simple, and the plug-and-play is reserved. Simulations and experimental results show that the improved droop controller can share load active and reactive power, enhance the power quality of the microgrid, and also have good dynamic performance.