Accurate load power equalization and bus voltage stabilization are the main control objectives of DC microgrids. However, traditional droop control causes problems of low current distribution accuracy and significant bus voltage deviation. An improved droop control strategy based on line resistance observations is proposed to solve this shortcoming. The main reason for the uneven distribution of the output current of each converter is the mismatch of line resistance. The line resistance is first estimated using the recursive least squares method. The droop coefficient is adjusted using the estimated line resistance value. Then further considering that the rated power of each converter is different, the droop coefficient is adjusted according to the rated power of the converter so that the output current of each converter is distributed in proportion to its rated power. Finally, an islanded DC microgrid model is constructed on the Matlab/Simulink platform, and three different droop coefficients are simulated to verify the effectiveness and feasibility of the method for power equalization and voltage stabilization under the operating conditions of constant and variable load, and converter withdrawal.