A single-phase voltage source inverter (VSI) still suffers from a long settling time and significant voltage overshoot/undershoot under the abrupt step-change of load current. This article analyzes the comprehensive large-signal dynamic process and limitation of the linear controller during step change in load current. The combination of linear and nonlinear control is presented which is a realistic, simple, and low-cost technique for enhancing the dynamic response of the single-phase VSI. A nonlinear controller based on the simplified capacitor charge balance algorithm is employed to drive the inductor current and capacitor voltage to attain the target value by precisely following the projected optimal trajectory during the transient process in a brief period. A linear PI controller is utilized during the steady-state operations such as input voltage variations, temperature drifts, and component ageing. The complete mathematical derivation as well as a design method is presented to guide the practical hardware implementation for the given main circuit parameters and identified load step change. Even though accurate time instants can be obtained using off-line numerical calculations, reasonable simplifications are provided for real-time practical engineering applications in DSP. Finally, simulation and experimental verifications prove that the single-phase VSI achieves a substantial settling time decrease and reduced voltage oscillations.