Renewable energy formed distributed generators (DGs) play a highest role in electricity requisite and reduced in the global warming. Distributed generation formed on wind, solar energy, biomass, mini-hydro along with use of fuel cells and micro turbines are becoming a more important energy source option in the future generation system. Advantages like environmental advocate, expandability and flexibility has made scattered generation, powered by various renewable and non- renewable micro sources, an attractive option for design modern electrical grids. The micro-grid concept initiates the reduction of numerous reverse conversions in an individual AC or DC micro-grid and also solution of connections for variable renewable AC-DC sources and loads of power systems. To the end customer the micro-grid be designed to addressed their special requirements; such as, improvement of local reliability, reduction of feeder losses, local voltages support, increased efficiency through use correction of voltage sag or uninterruptible power supply. This thesis provides a study of the control scheme for interconnection of interlinking converter(IC) between a DC bus bar and an AC bus bar. Here photovoltaic system and, wind turbine generator are used for the development of micro-grid. The models are designed for the converters to affirm stable system under various loads and resource conditions and also the control methods are studied. The maximum power point tracking (MPPT) algorithm is used to harness maximum power from DC sources and to coordinate the power exchange between DC and AC bus bar. The control of interlinking voltage source converter model in dq reference which is the cross- coupling between the two orthogonal dq axes. Using voltage sensor, the Fuzzy logic controller identifies the power load demand based on the design range. A possible control scheme is studied and simulated in MATLAB Simulink. The system behavior is analyzed by subjecting it to different changes in parameters, DC load and AC load conditions.