SummaryGrid‐forming (GFM) inverters offer stable frequency support for microgrid systems, even in the absence of synchronous generators. However, the GFM inverters have low inertia and vulnerability to system uncertainties and external disturbances. The conventional dual‐loop proportional integral (PI) control strategy, while widely used for its simplicity and robustness, suffers from poor dynamic performance. Motivated by this, this paper presents an observer‐based residual‐driven dynamic compensation (RDDC) strategy based on the coprime factorization technic and the Youla parameterization theory to achieve the primary control of the GFM inverter. The observer‐based RDDC strategy comprises four components: a PI controller for tracking control, a linear quadratic regulator (LQR) controller for dynamic adjustment, a residual generator based on the Kalman filter for state estimation and residual generation, and a residual compensation controller designed using model matching theory and solved through linear matrix inequality (LMI) methods for disturbance suppression. Simulation and experiment results consistently demonstrate that the observer‐based RDDC strategy ensures system robustness, enhances the dynamic and steady‐state performance of the GFM inverter system, and strengthens the ability of the GFM inverter to suppress disturbances.