The production of electricity from renewable energy sources like wind energy increases in recent years due to environmental problems and the shortage of traditional energy sources in the near future. This paper presents modeling, simulation and performance study of wind energy based distribution generation (DG) systems for grid connected mode with MPPT controller. The wind power generation system uses wind turbine (WT), a permanent magnet synchronous generator (PMSG), a three-phase uncontrolled diode rectifier bridge, dc/dc boost converter with MPPT controller, a dc bus with a capacitor and a current regulated PWM voltage source inverter. Perturb and Observe (P&O) technique is used for maximum power tracking. The performance of the developed model is studied for different wind speeds and load conditions. The wind power output is compared for the cases of with and without maximum power point tracking system. In this work the PQ control strategy is adopted for the inverter of the grid connected wind generation system. Simulation results show that the controllers can regulate the DC link voltage, active and reactive power produced by the wind based DG system.