This paper proposes a smooth transfer control method, which can transfer from the current-source control in the grid connected (GC) mode to droop control in the stand alone (SA) mode automatically. When the grid is normal, the DG unit is based on current-source control. Upon the occurrence of utility outage, the power and voltage control loop are automatically activated to regulate the load voltage. The advantages of this proposed strategy are as follows. Firstly, compared with droop control, the proposed control strategy can improve the grid current quality and output constant power when the grid voltage has oscillation in GC mode. Secondly, compared with the hybrid voltage and current control strategy, the quality of critical load voltage can be maintained during the transferring process, and the reliability of microgrid in SA mode can be improved. The simulation results are provided to verify the effectiveness of the proposed control method.