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Now a day's distributed generation (DG) system uses current regulated PWM voltage source inverters (VSI) for connecting the utility grid with DG source in order to meet the following objectives: 1) To ensure the grid stability 2) active and reactive power control through voltage and frequency control 3) Improvement of power quality (i.e. harmonic mitigation) etc. In this paper the comparative study between adaptive hysteresis and SVPWM current controller is presented in order to ensure the sinusoidal current injected in to the grid. The performance indices include THD of the grid current, fast current tracking during steady state and transient conditions. SVPWM current controller ensures less THD of the grid current at PCC, better dc-link voltage utilization over adaptive hysteresis current controller. The studied system is modeled and simulated in the MATLAB Simulink environment.