This paper addresses load current sharing and circulating current issues of parallel-connected dcdc converters in low-voltage dc microgrid. Droop control is the popular technique for load current sharing in dc microgrid. The main drawbacks of the conventional droop method are poor current sharing and drop in dc grid voltage due to the droop action. Circulating current issue will also arise due to mismatch in the converters output voltages. In this work, a figure of merit called droop index (DI) is introduced in order to improve the performance of dc microgrid, which is a function of normalized current sharing difference and losses in the output side of the converters. This proposed adaptive droop control method minimizes the circulating current and current sharing difference between the converters based on instantaneous virtual resistance \bm{R}-{{\bf droop}}. Using \bm{R}-{{\bf droop}} shifting, the proposed method also eliminates the tradeoff between current sharing difference and voltage regulation. The detailed analysis and design procedure are explained for two dcdc boost converters connected in parallel. The effectiveness of the proposed method is verified by detailed simulation and experimental studies. © 2010-2012 IEEE.