Energy exchange between AC grid and DC supply that is a part of a hybrid electric micro-grid takes place using various power converter designs. The single-phase, single-stage, AC-DC power dual active bridge converter is one option. The phase-shift modulation is used to regulate energy flow in both directions. The topology of one stage AC-DC dual active bridge converter based in bidirectional switching modules has been introduced. This paper next introduces the analysis of the AC side current considering basic modulation functions and suggests an optimum phase-shifted modulation strategy. The proposed modulation function provides minimum harmonics distortion. A simulation study is presented to compare the proposed strategy to the basic sinusoidal and triangular modulation techniques. The results show that the modified modulation reduces the average THD by about 55% and 39% compared to the standard sinusoidal and triangular modulation strategies respectively and ensures linear relationship between the transferred power and magnitude control coefficient.