Voltage source inverter (VSI) is a good candidate for grid forming microgrid because it provides constant amplitude, frequency, and sinusoidal shape voltage at point of common coupling (PCC). As the microgrid is separated from utility grid, voltage quality of the PCC is easily affected by the type of load. To ensure power quality in grid operation, a three-phase VSI providing automatic voltage compensation for unbalanced or nonlinear load is presented in this paper. To maintain voltage quality at a certain level, the Fast Fourier Transform (FFT) algorithm is embedded in a proportional-resonant (PR) controller to mitigate the total harmonic distortion (THD) at PCC. In the meantime, any change of voltage magnitude that is caused by the unbalanced load could be reduced as well. To further enhance the transient response with the change of load, a predictive current (PC) controller is integrated into the PR controller. All the control strategies are implemented by digital approach. The effectiveness of proposed controls is verified through experiments on a testbed of the three-phase stand-alone system.