This study discusses how to increase power quality by integrating a unified power quality conditioner (UPQC) with a grid-connected microgrid for clean and efficient power generation. An Artificial Neural Network (ANN) controller for a voltage source converter-based UPQC is proposed to minimize the system’s cost and complexity by eliminating mathematical operations such as a-b-c to d-q-0 translation and the need for costly controllers such as DSPs and FPGAs. In this study, nonlinear unbalanced loads and harmonic supply voltage are used to assess the performance of PV-battery-UPQC using an ANN-based controller. Problems with voltage, such as sag and swell, are also considered. This work uses an ANN control system trained with the Levenberg-Marquardt backpropagation technique to provide effective reference signals and maintain the required dc-link capacitor voltage. In MATLAB/Simulink software, simulations of PV-battery-UPQC employing SRF-based control and ANN-control approaches are performed. The findings revealed that the proposed approach performed better, as presented in this paper. Furthermore, the influence of synchronous reference frame (SRF) and ANN controller-based UPQC on supply currents and the dc-link capacitor voltage response is studied. To demonstrate the superiority of the suggested controller, a comparison of percent THD in load voltage and supply current utilizing SRF-based control and ANN control methods is shown.