The project report focuses on the 'grid interconnection of renewable energy sources at distribution level with power quality improvement features' as part of a B.Tech program in Electrical and Electronics Engineering. It outlines a novel control strategy for grid-interfacing inverters that can simultaneously perform multiple functions, such as power conversion and current compensation, to enhance power quality in distribution systems. Extensive simulation studies and experimental validations demonstrate the effectiveness of the proposed methodology in maintaining compliance with utility standards without incurring additional hardware costs.