Existing studies show that the virtual resistance scheme has positive effects on synchronous resonance suppression but negative effects on transient synchronization stability of virtual synchronous generator (VSG). To address this contradiction, this chapter proposes a modified VSG control scheme. The basic idea is that the virtual active power at virtual PCC, instead of real active power, is introduced as the power feedback into the control loop. Then, the effect of virtual resistance on transient stability can be equivalent to that of grid resistance, which improves transient stability. Besides, a proportion–integral controller is added at the forward loop to control the real active power to track the power reference. Compared with the existing VSG control methods, the modified VSG control scheme can well solve the conflict caused by virtual resistance between small-signal stability and transient stability.