In this article, a Type 2 fuzzy logic controller (T2FLC) is implemented in the PV system to improve the magnitude and frequency as well as the transient time response of the photovoltaic (PV) system. T2FLC is capable to handle more uncertainty because of the PV characteristic variable with atmospheric temperature and irradiation of the sun. Simple and most widely used Perturb & Observation (P& O) based MPPT technique has been implemented to extract maximum power to generate the desired switching pulse for DC-DC converter in the proposed standalone PV system. Deployed T2FLC based inverter in the proposed standalone PV system with different loads can improve the response of the system and reduce the oscillations as well as noise. The performance of the system validates over with proportional-integral (PI) and T1FLC controller. The proposed T2FLC algorithm deployed in a standalone three-phase PV system shows performance better than the other two controllers and simulate in MATLAB/SIMULINK environment.