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This paper describes the control of squirrel cage induction generator (SCIG) and its responses to grid voltage unbalance. The paper presents the vector control of SCIG. On the SCIG side converter, the control strategy enables the independent control of flux and electromagnetic torque. On the grid side converter, the control strategy is implemented to regulate the DC voltage and the reactive power from the grid. In order to study the effect of a grid voltage dip on SCIG, the effect of grid voltage drops are simulated with MATLAB/Simulink.