Abstract: Inverter-type distributed generation output is different from traditional generation during system fault. This results in challenges on fault characteristic analysis and protection schemes of microgrid. The output of inverter-type DG depends on not only microgrid conditions but also control modes. Firstly, new equivalent fault analysis model of microgrid is developed with consideration of PQ control and V/F control constraints. Secondly, Based on equivalent model, DG fault voltage and current under both symmetrical and asymmetrical conditions are determined. Finally, the well-developed power grid simulation software DIgSILENT is used to build microgrid simulation model of inverter-type DG with both PQ control and V/F control functions. The simulation results are compared with results calculated by traditional fault analysis. The comparison results verify the effectiveness and accuracy of proposed fault analysis method.