This paper proposes a new multifunctional control technique for a grid-connected hybrid distributed generation system composed of a photovoltaic system and a wind power system based on a voltage source converter (VSC). Indeed, aside from the generation and the injection of energy into the grid, the proposed system deals with power quality issues caused by harmonics generated by non-linear loads in order to keep the source current uncontaminated. The VSC serves to first ensure that the power generated from the hybrid renewable energy source is fed to the utility grid and acts as a shunt active power filter in case an abnormal increase in the THD of the source current above the standard permissible values is detected due to the non-linear load connection. The two sources of the hybrid system are connected to a common DC bus to simplify the control and reduce the cost of the system, and a maximum power point tracking controller is used for both sources. The major advantage of this novel proposed multifunctional control technique is its ability to inject harvested power into the grid while simultaneously ensuring the compensation of the harmonics and reactive power. The proposed multifunctional control technique is validated through an extensive simulation analysis using MATLAB/Simulink.