In this paper, a parameter estimation strategy of individual parallel connected inverter is presented based on a novel model reference adaptive system architecture has been proposed. Two fictitious quantities with no physical significance has been chosen and are given by X = u•φ∗ and Y = u∗ x φ where u is the steady state voltage difference from the inverter poles to the load and φ is the change in flux from the inverter poles to the load. Using these two models, a closed loop estimation architecture is developed to estimate the parameters of each of the parallel inverters. A droop control with an inner voltage and current controller based on Lyapunov energy function has been utilized in this paper. A parameter estimation architecture is proposed to online update the controller parameters which change during the operation. The proposed control come estimation architecture is verified via computer simulations based on MATLAB/Simulink and PLECS domain and various case study results are presented to prove the efficacy of the system.