This paper proposes a new algorithm for power flow analysis in droop controlled DC microgrids. By considering the droop control in the power flow analysis for the DC microgrid, when compared with traditional methods, more accurate analysis results can be obtained. The algorithm verification is carried out by comparing the calculation results with detailed time domain simulation results. With the droop parameters as variables in the power flow analysis, their effects on power sharing and secondary voltage regulation can now be analytically studied, and specialized optimization in the upper level control can also be made accordingly. Case studies on power sharing and secondary voltage regulation are carried out using proposed power flow analysis.