This Paper presents a control strategy of the grid interconnected inverter Renewable Energy Sources (RES). This system can achieve the maximum benefits from these grid interconnected inverter when installed in 3-phase 4-wire distribution system. Increasing electrification of daily life causes growing electricity consumption and the rising number of sensitive or critical loads demand for high quality electricity. One of the main problems facing today is that related with the transmission and distribution of electricity. Due to the rapid increase in global energy consumption and the diminishing of fossil fuels, the customer demand for new generation capacities and efficient energy production, delivery and utilization keeps rising. Utilizing distributed generation, renewable energy and energy storage can potentially solve problems as energy shortage. With the increase in load demand, the Renewable Energy Sources (RES) are increasingly connected in the distribution systems which utilizes power electronic Converters/Inverters. The inverter can perform as a multi function device by incorporating active power filter functionality. The inverter can thus be utilized as: 1) power converter to inject power generated from RES to the grid, and 2) shunt APF to compensate current unbalance, load current harmonics, load reactive power demand and load neutral current. All of these functions may be accomplished either individually or simultaneously. This new control concept is demonstrated with extensive MATLAB/Simulink simulation studies and validated through digital signal processor-based laboratory experimental results.