This paper presents the integration of grid connected solar photovoltaic with battery energy storage system based micro grid operation of improving the power quality issues. The MPPT is used to extract the maximum amount of PV power generation from the irradiance level of the solar. The battery energy storage system is used to maintain the voltage level between the PV generation unit and the utility grid. The bidirectional converter control strategy is expected to improve the power quality of the integrated micro grid system. The simulation result shows that the proposed controller improves the voltage unbalance under the voltage sag in the utility grid. The effectiveness of the simulation results in the THD of the grid connected inverter voltage solar PV is 0.49%. The overall system performance is modeled and simulated under the MATLAB/SIMULINK environment.