This paper presents a modified controller by integrating dual unified power quality conditioners: iUPQC controller with its utilization in microgrid and power-quality applications. By utilizing this controller it extends the power quality characteristics just like the UPQC controller it offers reactive power regulation both at load-side bus voltage and at grid-side bus voltage, which also compensates voltage swell & sag. At grid-side iUPQC controller will work as a STATCOM, by providing all the conventional UPQC applications both at the grid-side and load-side. Simulink results are providing to validate the latest functionality of the apparatus.