Abstract-This paper focuses on the simulation of Unified Power Quality Conditioner (UPQC) with Grid-connected PV-FC (Photovoltaic Fuel Cell) System in grid connected mode. The proposed methodology focuses on drawing the sinusoidal current from the supply system even the presence of nonlinear loads in the system draws harmonic current. The harmonic power is provided by the Shunt Controller of UPQC, to restrict the harmonic components to be pulled at the supply, where as the series component is able to balance the voltage related problems such as unbalancing. The UPQC deals with the load harmonic power and the zero sequence power as well resulting to imbalance in the power system, additionally compensating the reactive power, so that the source voltage and the compensated current both will be in phase. The system performance under variable solar irradiance condition has been observed to be invariable.