In order to simplify the Microgrid small signal model, only the dynamics of the power allocation loop of the droop generators and the dynamics of the DC voltage and reactive power output control loop of the PQ generator were considered. Normally, the filter reactance of the PQ generator is much larger than the Microgrids line impedance and the output power of the PQ generator is approximately controlled by the magnitude and phase of the inverter bridge voltage. By this approximation, the small signal model of the PQ generator can be in accordance with the droop generator by defining the small signals of the magnitude and phase of the output voltage as the model states. And in order to overcome the adverse impact of the big droop coefficients on the stability of the Microgrid, a feed forward path on the real power allocation loop was added to improve the stability. Lastly, time domain simulation confirmed the above analysis.