In this work, islanding detection, the transition between the modes, optimal grid synchronization capability, and power quality enhancement are ensured in any operating condition of the microgrid. The microgrid under study consists of a 3-phase two-stage grid-connected solar photovoltaic – battery as a storage system. An incremental conductance-based maximum power point algorithm extracts maximum power in both standalone modes of operation and grid-connected modes. Balancing of grid current, reactive power compensation, and power quality improvement is provided by adaptive filtering technique based least mean square algorithm-based voltage source converter. In this system synchronization and seamless change of mode from the grid integration mode (GIM) to standalone integration (SAI) mode of operation is enhanced ant lion optimization (ALO). The error difference between the phase angle of the load and grid is minimized using an ALO-optimized proportional integrator (PI) controller. The results show the ALO-based controller decreases the synchronizing time cycles between the phase angle of load and grid angle, therefore, enhancing synchronization capability with this, the frequency of the grid is further enhanced by ALO-optimized values. Simulation results show the robustness of the voltage source converter (VSC) control. The system remains satisfactory as per IEEE standards under various dynamic and steady-state conditions.