Abstract The rising world-wide trend toward developing clean energy resources has caused dispersed installation of renewable energy resources (RESs) in distribution grids. Microgrid (MG) concept is proposed as a key factor in optimal and secure integration of, mostly converter-based, RESs into power systems. One of the major challenges related to MG control is ineffectiveness of droop control in accurate power sharing which is affected by the feeder impedance. In this paper, a fuzzy-based consensus control protocol is developed to address this issue in multi-bus MGs (MBMGs). Consensus signals are inserted into the conventional droop controller as complementary part to overcome the drawback of the droop control in power sharing in MBMGs. Dynamic fuzzy coefficients of consensus signals are designed to model X/R ratio of the grid impedance in the control system. In addition, a novel small signal model of MBMG is developed, by considering the conventional droop control, MBMG power network and power lines impedance to design and assess performance of the control system. Consensus control is also incorporated into the proposed control system of MBMG to analyze the stability. Simulation results are presented to assess effectiveness of the control strategy in MATLAB\Simulink.