In this paper, based on the paradigm of power converter technique, a new approach to control the micro turbine generator had been proposed. The control goals of the proposed converter merge with the concepts of power generation and quality enhancement, which can supply active power and compensate reactive power simultaneously to keep the unity power factor of the AC source at the customer site. The method proposed in this paper had been examined under various scenarios, including the loss of grid and the parallel operation. By those case studies with computer simulations and hardware experiments, the results show that the proposed approach not only effectively compensate the mains current to be sinusoidal for the grid-tied operation, but also ensure the voltage quality at the demand side in spite of loss of mains.