Conventionally, voltage regulation and economic dispatch in DC microgrid are performed at different time scales, which cannot keep the distributed generators (DGs) at the optimal operating point in real time. In this paper, a novel distributed cooperative control strategy is proposed to synchronously achieve stable bus voltage restoration and optimal power sharing in islanded DC microgrids. The proposed strategy breaks the constraints of hierarchical control strategies, and incorporates the objectives of voltage regulation and economic dispatch into a distributed cooperative control framework to eliminate average bus voltage deviation and minimize total power generation costs in real time. The stability of the proposed strategy is verified by eigenvalue analysis and steady-state analysis. Furthermore, the concept of “incremental cost (IC) margin” is introduced in cooperative control considering capacity constraints to avoid the converter output power violation and performance degradation. Finally, the MATLAB/Simulink simulation and StarSim HIL experimental results verify the effectiveness and robustness of the proposed strategy in an islanded DC microgrid under various testing scenarios.