Microgrids (MGs) are initiating the large number of opportunities for the future of distribution units. Distributed generation resources (DERs) such as solar, wind, combined heat and power, energy storage, etc are tie up with the microgrid or distribution grid (DG) which can be used for improving the power quality. Distributed generation and microgrid are the most challenges to the power system network. This includes the stability, reliability, increasing power demand and power quality issues in power system. The objective of this paper is to improve the voltage profile of grid - connected PV systems. In the distribution system, PV source is the challenging one which is directly disturbs the power quality issues. Here MPPT algorithm is used to achieve the maximum amount of power in grid - connected PV systems. This paper presents the grid connected inverter with a PI controller is proposed. At the connection of point of common coupling real and reactive power by abc to dqo transformation could be compensated under the unbalanced load condition. The proposed control method is used to improve the voltage profile in the PV systems, dc voltage regulation across the grid side inverter control and to reduce the distortions under the sudden load changes. The effectiveness of the proposed system is replicated through the MATLAB/SIMULINK using Simpower system library.