The increased penetration of wind power into the grid will save the fossil fuels and reduce the impact on the environment; however, it also presents many challenges to power system operation and control, system stability and power quality. In this paper, the use of static compensator (STATCOM) with battery energy storage system (BESS) is to enable smooth and the proper integration of wind energy system to the grid is taken as the main objective. This work presents a novel controller for an integrated STATCOM-BESS for grid-connected wind energy system. The simulation of the proposed system is done in Simulink with hysteresis current controlled pulse width modulation-based controller, which is in the IEC 61400-21 standard. It is observed that the STATCOM with BESS, operated with the specified controller, provides reactive power support, good harmonic mitigation as well as maintaining the source current the voltage without any phase angle difference. The experimental setup composed of Matlab-dSPACE DS1104 interface for generating the gate pulse, isolation and gate driver circuit, and the three-phase inverter is created and the system is tested for various combinations of R load and R-L load, and the measurements are recorded using FLUKE 434 energy analyser. © 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group.