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A hybrid Linear Quadratic Regulator (LQR) and Proportional-Integral (PI) control for a MicroGrid (MG) under unbalanced linear and nonlinear loads was presented and evaluated in this paper. The designed control strategy incorporates the microgrid behavior, low-cost LQR, and error reduction in the stationary state by the PI control, to reduce the overall energetic cost of the classical PI control applied to MGs. A Genetic Algorithm (GA) calculates the parameters of LQR with high-accuracy fitness function to obtain the optimal controller parameters as settling time and overshoot. The gain values of the classical PI controller were determined through the improved LQR values and geometrical root locus. When MG operates in the grid-tied mode under unbalanced conditions, the controller performance of the Current Source Inverter (CSI) of the MG is considerably affected. Consequently, the CSI operates in a negative-sequence mode to compensate for unbalanced current at the Point of Common Coupling (PCC) between the MG and the utility grid. The study cases involved the reduction of the negative-sequence percentage in the current at the PCC, mitigation of harmonics in the current signal injected by the MG, and close related power quality issues. All these cases have been analyzed by implementing an MG connected at the PCC of a low-voltage distribution network. A numerical model of the MG in Matlab/Simulink was implemented to verify the performance of the designed LQR-PI control to mitigate or overcome the power quality concerns. The extensive simulations have permitted verifying the robustness and effectiveness of the proposed strategy. [ABSTRACT FROM AUTHOR]