This paper presents a proof-of-concept for a novel dq droop control technique that applies DC droop control methods to fixed frequency inverter-based AC microgrids using the dq0 transformation. Microgrids are usually composed of distributed generation units (DGUs) that are electronically coupled to each other through power converters. An inherent property of inverter-based microgrids is that, unlike microgrids with spinning machines, the frequency of the parallel-connected DGUs is a global variable independent from the output power since the inverters can control the output waveform frequency with a high level of precision. Therefore, conventional droop control methods that distort the system frequency are not suitable for microgrids operating at a fixed frequency. It is shown that the proposed distributed droop control allows accurate sharing of the active and reactive power without altering the microgrid frequency. The simulation and hardware-in-the-loop (HIL) results are presented to demonstrate the efficacy of the proposed droop control. Indeed, following a load change, the dq droop controller was able to share both active and reactive power between the DGUs, whereas maintaining the microgrid frequency deviation at 0% and the bus voltage deviations below 6% of their respective nominal values