In this paper, the internal model controller (IMC)-based universal droop controller is proposed to improve the dynamic response of parallel operated inverters as compared to conventional droop controller when there is a mismatch in line impedance. The proposed controller is demonstrated on two converters, 3-bus system, and results are compared with proportional integral (PI)-based conventional droop controller. The effectiveness of the proposed controller is verified from the dynamic response of the system. Also, the voltage and frequency of the system can be maintained within an acceptable range with the proposed controller.