Dc microgrid has the advantage of high efficiency as compared to the ac system. Droop method has been realized to suppress the current mismatching among the distributed sources. However, this method involves distribution loss due to the line impedance. In this paper, a novel droop method is proposed to minimize the distribution loss as well as the voltage
deviation by adjusting the droop coefficient. The proposed droop method is verified by using the simulation based on PSCAD/EMTDC.