Power inverters play an important role in renewable energy integration, active power control and reactive power conditioning in microgrid. Droop control is widely used for power sharing among parallel connected converters. The capacitive-coupled inverter (CCI) has benefits for satisfactory performance with lower operation voltage. However, application of droop control in CCI suffers from a narrow controllable power output range, which indicates insufficient usage of CCI's power output capability. In this paper, an improved closed-loop droop control technique is developed to fully utilize the CCI's power output capability. This is archived by using the error as feedback signal for further modification of the input control signal. Different from conventional feedback control, challenges are present on dealing with the nonlinear characteristics of the system and the coupling between active and reactive power control. The idea will be thoroughly investigated, and both simulation as well as experimental results support that the performance of proposed closed-loop droop control is better than conventional one.