The surge in the integration of renewable energy sources with the grid has prompted a significant increase in research into power conditioners for high-quality energy supply. During both balanced and unbalanced conditions, power conditioners are used to provide not just quality power but also balanced rms voltage and current towards the demand at a constant frequency. A Photovoltaic (PV) connected Unified Power Quality Controller (UPQC) is designed with a neutral point clamped (NPC) multilevel inverter for improving the power quality is presented. In order to design the controllers for the various power converters, various control strategies were used. A three-phase four-wire NPC multilevel inverter is made into a power quality conditioner with Synchronous Reference Frame (SRF) theory. The UPQC is the most relevant device in compensating the power quality issues for sensitive and critical loads. The DC capacitor linked voltage is balanced by using a PI controller. The designed system is simulated by using MATLAB/Simulink software and performance is found satisfactory during various conditions.