This paper demonstrates the Power Quality enhancement of grid interactive micro grids. The Power Quality problem is addressed by Unified Power Quality Conditioner (UPQC) which provides a cooperative control on voltage harmonics and unbalances in a micro grid. The proposed system presents Power Control strategies by using a single stage converter for a grid connected micro grid system in order to reduce the multiple DC-AC-DC conversions in an individual AC or DC grid. These micro grids with the proposed converter are applied to general renewable energy sources which will lead to maximum utilization of power at environmental free conditions with low losses improving the efficiency of the system. This paper also proposes the concept of neuro-fuzzy controller for frequency tracking and extraction of harmonics in grid voltage and load currents. This system is verified using MatIab/Simulink with the results being satisfactory.