To deal with power distribution problems of multiple parallel inverters in microgrid, the interaction mechanism between circulating-current and power distribution is elaborated firstly. Under the situation that the low-voltage microgrid line parameters is equivalent in resistance and reactance, by adding virtual reactance to compensate microgrid transmission line and achieve the resistance and inductance ratio like high-voltage transmission lines, the coupling problem of active power and reactive power is solved. Then the conditions are studied that the control strategy should meet for precise power distribution and circulating-current restraint with inductive impedance line. Improved droop control is put forward aiming at the coupling of reactive power distribution and inductive line impedance, which can realize reactive power distribution and circulating-current restraint. Finally, the correctness of the theoretical analysis and the proposed control strategy is verified by PSCAD/EMTDC simulation.