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The controller of voltage source inverter (VSI) is the essential part of distributed generation (DG) system as an interface in solving the power quality problems. In this paper, a new controller (based on feedback linearization) has been proposed due to achieving some prescribed behavior to mitigate the power quality problems. The new controller has been designed base on the average state space model of VSI and network which is nonlinear. The real time simulation of the proposed system shows precise tracing the load requirements and good mitigating the power quality problems rather than previous studies.