The development of a network termed microgrid (MG) has been motivated owing to augmentation in renewable energy source (RES) infiltration along with the utilization of enhanced power electronic technologies. Recently, more popularity has been gained by the hybrid MG (HMG). Maintaining the power system’s (PS) small-signal stability (SSS) is highly complicated during the energy enhancement of RES. The enhancement of the SSS has been focused on by numerous existing methodologies; however, the optimal solution was not obtained by those methodologies. A new controller with the assistance of bell-curved squirrel search optimization (BCSSO) is proposed to address the aforementioned issue. Initially, for PSs such as photovoltaic (PV), wind turbines, along with fuel cells, a mathematical model is ascertained. Then, in this, the converter design has been developed. The PV’s maximum power flow is recognized by maximum power point tracking (MPPT) in the bidirectional switched buck-boost converter (BSBBC), which is utilized in this research, and by utilizing the fuzzy ruled linear quadratic Gaussian (FRLQG), the converters are controlled to assure safe operation along with soft dynamics. By employing the BCSSO, the parameters are modified in this controller which in turn ameliorates the SSS. The experiential evaluation of the proposed system’s performance is analogized with the existing methodologies. Consequently, the outcomes confirmed that a better performance was attained by the proposed methodology than the prevailing works.