A three-phase-based Modified Dual Source Inverter has been proposed in this manuscript. The existing three-phase system is plagued with multistage power conversion, reducing its efficiency. The proposed converter can integrate two sources (AC and DC) simultaneously and supplies power to the three-phase load. It can switch its operation from the grid to grid-solar, solar to grid, as per the availability of the source. The inverter can operate as a three-phase DC to AC inverter, AC to AC inverter, and it can use grid and PV power directly with the help of a sino-squo-sino waveform. The system has been studied when switching from one mode to another. The system behavior has been analyzed on MATLAB SIMULINK and experimental setup. The proposed approach has been experimentally validated and operated using a TEXAS-based microcontroller (TMS320F28739d). The proposed method has reduced the THD to 4.32% when operated on solar and grid. The THD is 0.25% when operated on the grid power. The proposed system has also been compared based on components. It uses six IGBTs, One Mosfet and three Bidirectional switches.The reduced number of components reduces switching losses, which increases the system's efficacy and performance.