This article briefs about a smart multifunctional single-phase inverter control for a domestic solar photo voltaic (PV)-based distributed generation that can work in both a grid-connected mode and an islanded mode by making the inverter mimic the operation of a synchronous generator. The control objectives were threefold: to provide the required active and reactive power for normal operating conditions and under varying operating conditions, to maintain the rated voltage and the rated frequency for the islanded mode, and to switch between the two modes of operation with the least amount of disturbance for the system while behaving as a virtual synchronous generator (VSG). The control structure is divided into three major loops: the outermost loop responsible for power control, the middle loop responsible for voltage control, and the innermost loop responsible for current control. The proposed control methodology incorporates the functionalities of the grid-connected and the islanded-mode control into a single complex structure and thus provides support to the grid under abnormal conditions while providing good-quality power to consumers under grid failure. The efficacy of the system is good. The operation under various modes were simulated in MATLAB Simulink, and the proportional integral (PI) controllers used for current controllers were tuned using particle swarm optimization (PSO). It can be concluded that the control structure becoming complex is benefitted by the added advantages of the smart PV system. The smart domestic PV system helps the prosumer to actively provide frequency support and voltage support, adding frequency support to the existing multifunctional PV systems.