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This research paper presents a new approach to address power quality concerns in microgrids (MGs) by employing a superconducting fault current limiter (SFCL) and a fuzzy-based inverter. The integration of multiple power electronics converters in a microgrid typically increases total harmonic distortion (THD), which in turn results in power quality issues. Moreover, the intrinsic variability of solar and wind power sources gives rise to fluctuations in power generation, which consequently leads to power oscillations and voltage sag within microgrids that rely on renewable energy. This research paper introduces a technical approach to achieve power balance in renewable-based microgrids (MGs) by utilizing a fuzzy logic-controlled (FLC) pulse width modulation (PWM) inverter. The Microgrid (MG) consists of a hybrid photovoltaic (PV) system and a wind energy conversion system (WECS) that utilizes a permanent magnet synchronous generator (PMSG). The system employs an optimal torque-controlled maximum power point technique (MPPT) algorithm to optimize power output. The battery energy storage system (BESS) is employed to facilitate power provision during critical scenarios or to ensure a stable power output for fluctuating loads. The SFCL is utilized as a device for voltage compensation in cases of voltage sag incidents. The effectiveness of the suggested control strategy is assessed by performing a comparative analysis of total harmonic distortion (THD) in the load voltage, with and without the utilization of a SFCL. The results suggest that the incorporation of an FLC inverter-SFCL-BESS system effectively mitigates THD and voltage sag, according to the requirements set by the IEEE 519 standards. The research study is carried out by using the MATLAB/SIMULINK software environment. [ABSTRACT FROM AUTHOR]