This paper proposes a line-interactive static UPS system with a simple control strategy for the operation of three-leg IGBT based AC/DC converter. Min-Max algorithm based PWM technique is used as switching logic for AC/DC converter. The developed control strategy addresses the applications like reactive power compensation of load, unbalanced currents compensation, active power compensation during peak load time on the grid and Seamless power transfer operation from grid-connected mode to islanding mode. LCL filter is designed to meet the THD limits specified in IEEE Std 519-2014.