Paralleling of voltage source converters (VSCs) with a limited maximum output power is essential when the power rating of a system must be increased. Interleaving (ILV) of the switching signals for parallel-connected VSCs provides a better harmonic spectrum than hard paralleling (HP), i.e., applying identical signals to all VSCs. This can be particularly beneficial for grid-tied converters, since a smaller LCL filter can be realized. To investigate the performance limitations and the impact of ILV operation on the LCL filter hardware, a comprehensive optimization procedure for LCL filters and intercell transformers (ICTs) for two paralleled VSCs is presented in this paper. In addition, a comparative evaluation of HP and ILV operation of VSCs is carried out. The developed optimization procedure and the hardware benefits of ILV operation were verified through testing on a 260-kW full-scale system. Compared with the commercial state-of-the-art weight-optimized LCL filter for HP, the developed LCL filter for ILV utilizing an integrated ICT reduces the total filter weight by 30% while guaranteeing harmonic standard compliance and meeting thermal requirements.