This work deals with the frequency regulation, voltage regulation, power management and load levelling of solar photovoltaic (PV)-battery-hydro based microgrid (MG). In this MG, the battery capacity is reduced as compared to a system, where the battery is directly connected to the DC bus of the voltage source converter (VSC). A bidirectional DC-DC converter connects the battery to the DC bus and it controls the charging and discharging current of the battery. It also regulates the DC bus voltage of VSC, frequency and voltage of MG. The proposed system manages the power flow of different sources like hydro and solar PV array. However, the load levelling is managed through the battery. The battery with VSC absorbs the sudden load changes, resulting in rapid regulation of DC link voltage, frequency and voltage of MG. Therefore, the system voltage and frequency regulation allows the active power balance along with the auxiliary services such as reactive power support, source current harmonics mitigation and voltage harmonics reduction at the point of common interconnection. The experimental results under various steady state and dynamic conditions, exhibit the excellent performance of the proposed system and validate the design and control of proposed MG. Nomenclature v sab , v sbc , v sca sensed line voltage at point of common interconnection (PCI) V tm *, V tm , V er reference PCI voltage amplitude, sensed PCI voltage amplitude and their error i La , i Lb , i Lc load currents of phase 'a', 'b' and 'c' i sa , i sb , i sc sensed source currents of phase 'a', 'b' and 'c' i sa *, i sb *, i sc * reference source currents of phase 'a', 'b' and 'c' V pv , I pv solar PV voltage and current V dc *, V dc , V dcer reference DC-link voltage, DC-link voltage of VSC and their error I b *, I b , I ber reference battery current, sensed battery current and their error C dc , L f , R f , C f DC-link capacitor, coupling inductor, resistance and capacitor of ripple filter L b , L dc boost converter inductor, BDDC inductor