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In this paper, a novel current control technique is proposed to control both the active and reactive power of a single phase hybrid PV inverter connected to grid. The hybrid PV inverter not only maintains constant load voltage but also ensures active and reactive power flow from the grid with low THD even at the presence of non-linear load. A p-q theory based approach is used to find out the current reference of the parallel converter to ensure desired operating condition at the grid terminal. A novel current controller is also proposed. The proposed current controller is very simple to implement and gives superior performance over the conventional current controller such as rotating frame PI controller. The stability of the proposed controller is ensured by direct Lyapunov method. Detailed simulation as well as experimental results are presented to show the efficacy of the proposed current control scheme along with the proposed Non-Linear controller.