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The power supply system which requires the low-voltage / high-current output has been changing from conventional centralized power system to distributed power system. The distributed power system consists of bus converter and POL. The most important factor is the system stability in bus architecture design. The overlap between the output impedance of bus converter and input impedance of POL causes system instability, and it has been an actual problem. Increasing the bus capacitor, system stability can be reduced easily. However, due to the limited space on the system board, increasing of bus capacitors is impractical. The urgent solution of the issue is desired strongly. This paper presents the output impedance design for on-board distributed power system by means of full- regulated bus converter. The output impedance peak of the bus converter and the input impedance of the POL are analyzed, and it is conformed by experimentally for stability criterion. Furthermore, the optimal intermediate bus capacitance design for system stability is proposed.