In this project, a dual voltage source inverter (DVSI) design is proposed to enhance the reliability and power quality of the microgrid system. The devised plan incorporates two inverters, facilitating power exchange from distributed energy resources (DERs) and compensating for local nonlinear and unbalanced loads. The control algorithms are developed based on direct symmetrical component theory (DSCT) to enable DVSI operation in grid-sharing and grid-embedding modes. The suggested scheme offers increased stability, reduced bandwidth requirements for the primary inverter, lowered costs due to a decrease in the filter size, and improved utilization of microgrid control with a reduced dc-interface voltage rating for the main inverter. These features position the DVSI design as a promising alternative for microgrid applications, particularly those serving sensitive loads. The proposed topology and control strategy are validated through extensive simulation and experimental results.