In this paper, a new control method is proposed to improve the dynamic performance of the power sharing control system in islanded micro grids. In this paper, for the first time, the virtual impedance loop, which has been used to increase the accuracy of the power sharing in micro grids, is used to improve the dynamic performance of a micro grid. At first, by using the small signal analysis, it is indicated that low frequency modes of an isolated micro grid is significantly affected by the power sharing controller parameters. Then, a simplified model of system, including its low frequency modes, is extracted. In the next step, using the extracted model and inserting virtual impedance at the control system of the inverter, a new method is presented to improve the system damping factor. The coefficients of the virtual impedance loop are determined by pole placement method. Finally, the performance of the presented strategy is verified using simulations carried out in PSCAD software.