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In this paper, the transient operation of a four-leg inverter equipped with an innovative control strategy under unbalanced load conditions is investigated. The inverter is proposed for transformerless hybrid power system applications, in order to provide simultaneous supply of three-phase and single-phase AC loads with balanced voltage and constant frequency. The four-leg inverter is controlled to ensure balanced voltage by means of a control strategy based on the decomposition of the supply three-phase voltage and current into instantaneous positive, negative, and homopolar sequence components using phasor representation. These three sequences are controlled independently in their own reference frames as DC signals. The implementation derived for the controller design is also described. The transient operation performance of the proposed control strategy has been tested in simulations with an average model and experimentally using a laboratory prototype.