This paper presents a PQ control strategy for micro grid inverters with axial voltage regulators. The inverter works in the voltage-controlled mode and can help improve the terminal power quality. The inverter has two axial voltage regulators. The 1st regulator involves the output voltage amplitude and output impedance, while the 2nd regulator controls the output frequency. The inverter system is equivalent to a controllable voltage source with a controllable inner output impedance. The basic PQ control for micro grid inverters is easy to accomplish. The output active and reactive powers can be decoupled well by controlling the two axial voltages. The 1st axial voltage regulator controls the reactive power, while the 2nd regulator controls the active power. The paper analyses the axial voltage regulation mechanism, and evaluates the PQ decoupling effect mathematically. The effectiveness of the proposed control strategy is validated by simulation and experimental results.