Abstract-In this paper a model predictive control (MPC) has been designed and implemented on the Packed U-Cell (PUC) inverter which has one isolated DC source and one capacitor as an auxiliary DC link. The MPC is designed to regulate the capacitor voltage at the desired magnitude to have seven voltage levels at the output of the inverter. Since grid-connected application is targeted by this application, the inverter should be capable of supplying requested amount of active and reactive power at the point of common coupling (PCC) as well. Therefore, MPC should also consider the line current control in order to monitor the exchange of reactive power with the grid while injecting appropriate active power at low THD. Various experimental tests including change in DC source voltage, active power variation and operation at different power factor (PF) have been performed on a laboratory prototype to validate the good performance obtained by the proposed MPC. The dynamic performance of the controller during sudden changes in dc capacitor voltage, supply current and PF demonstrates the fast and accurate response and the superior operation of the proposed controller.