Line-interactive uninterruptible power supply (UPS) systems are good candidates for providing energy storage within a microgrid. In this paper, a control scheme for a line-interactive UPS system applied in a low-voltage microgrid is presented. It is based on the Q-w and P-E droop control to achieve a seamless transition between grid-connected and stand-alone operation modes. Moreover, a new model for designing the controllers is built in the dq-frame based on the instantaneous power definition.The new-built model takes into account the dynamic performance of the output impedance of the inverter in the dq-frame and can be evaluated in the time domain. Compared to the traditional model based on the instantaneous power definition, the new-built model is more accurate to describe the dynamic performance of the system. Simulation and experimental results obtained with a microgrid consisting of two 40-kW line-interactive UPS systems are given to validate the control strategy of the line-active UPS system and the accuracy of the new-built model.