In this paper, a circulating current reduction approach for the parallel operation of fuelcell systems with Z-source inverters is investigated. The carrier phase shifted SPWM(Sinusoidal Pulse Width Modulation) is used as a modulation method since it has an advantage in reducing output current harmonics. However, when this technique is applied to the parallel operation of Z-source inverters, it additionally produces circulating currents. A coupled circulating current reactor is used to reduce circulating current generated by the parallel operation of Z-source inverters and to reduce output current harmonics. The proposed circulating current reduction approach using coupled circulating current reactors is verified through simulation and experiment.