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Now a day's distributed generation (DG) system uses current regulated PWM voltage-source inverters (VSI) for synchronizing the utility grid with DG source in order to meet the following objectives: (1) To ensure grid stability (2) active and reactive power control through voltage and frequency control (3) power quality improvement (i.e. harmonic elimination) etc. In this paper the comparative study between hysteresis and proportional integral (PI) with hysteresis current controller is presented for 1-Φ grid connected inverter system. The main advantage of hysteresis+PI current controller is low total harmonic distortion (THD) at the point of common coupling (PCC) at a higher band width of the hysteresis band. The studied system is modeled and simulated in the MATLAB Simulink environment.