This paper presents a simple and robust fuzzy logic with Adaptive linear Neuron (Adaline) controller. It is used for controlling the Direct driven Permanent Magnet Synchronous Generator (D-PMSG) based Wind Energy Conversion System(WECS) supplying three phase loads. In practice the loads are non-linear in nature and therefore harmonics are injected in to the generating system. By this PMSG is affected by these harmonics and leads to poor voltage regulation and requires adjustable reactive power source. The fuzzy logic is employed as control strategy for machine side converter to maintain the constant DC voltage supplying to GSC without any additional DC-DC converter. The Adaline Based Load Side Converter (LSC) is employed to mitigate the harmonics and delivering the reactive power co-ordinately to load. A dynamic model of PMSG feeding Linear / Non linear loads using synchronous reference frame method are developed for predicting the system behaviour under various loading conditions. The result shows that the wind turbine operates at variable speed with optimized performance and the power quality improvement can be achieved in terms of minimum total harmonic distortion (THD) according to the IEEE 519 standard. The Adaline controller is used for accurate estimation of phase and frequency at the point of common coupling (PCC). The feasibility of the proposed system model and integrated control strategy are verified using MATLAB/Simulink simulations.