This paper presents the grid synchronization of photovoltaic (PV)-battery based microgrid with multifunctional capabilities. The proposed system is capable to work in the grid integrated mode as well as in islanded mode, based on the grid availability. The objective of this work is a seamless transition between two operating modes of a three phase microgrid. Besides, capability of reconfiguration, it integrates maximum extracted PV power to the utility by utilizing PV feed – forward loop (PVFFL) and suppresses the harmonics currents of nonlinear loads connected to a microgrid. Moreover, an incorporation of PVFFL improves the dynamic response of three phase microgrid under variable climate conditions. The mandatory control structures (voltage control and current control) of voltage source converter (VSC) are utilized together with synchronization control to synchronize a three phase microgrid to the utility. Tests results illustrate a seamless transition and other operating conditions of three phase microgrid.