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Based on the comparisons of several inverter configurations in the aspects of efficiency, response, volume, current distortion, and price, in this article, we present a feasible three-phase four-wire (3Φ4W) grid-connected hybrid-frequency parallel inverter system (HbFPIS) with ripple compensation to achieve low current distortion and fast response. An HbFPIS consists of a low-frequency-high-power inverter (LFHPI) and a high-frequency-low-power inverter (HFLPI) connected in parallel. An LFHPI design results in higher power output with lower frequency (LF) switching devices, such as insulated gate bipolar transistors (IGBTs) being more cost-effective. An HFLPI design can reduce switching loss by lowering the power requirement of high-frequency (HF) switching devices while increasing dynamic response. With the direct digital control and ripple compensation, LF current ripples are attenuated by the HFLPI to a smaller level, remaining mainly HF current ripples and, thus, resulting in smaller filter size and weight. The design of an HbFPIS ensures that the system has high power output with cost-effective devices, fast response, and smaller output filters. Ripple attenuation, current tracking capability, and inverter stability are analyzed in the article. Low current distortion and fast current tracking performance are validated by the 300-kW simulated and the 10-kW experimental results of a 3Φ4W HbFPIS in grid-connected and active power filter modes. [ABSTRACT FROM AUTHOR]