This paper proposes a novel automatic mode transition control strategy for multiple inverters to operate in grid-connected and standalone modes. When grid is available, these inverters feed power the grid by operating in current control mode. Upon grid failure, all inverters automatically shift to droop control mode for achieving proportional power sharing and shift back to current control mode when the grid becomes available. The synthesis of dual structure control algorithms of various inverters is achieved using novel state machines. These state machines are designed to facilitate smooth mode transition of the inverters. In this way, the control signals for mode transition are generated by state machines specific to each inverter. Unlike existing control methods, the proposed method neither requires communication-based supervisory control of inverters nor it requires dedicated storage facility for achieving smooth mode transition. The proposed control strategy is tested on a simulation model as well as an experimental prototype multi-inverter system.