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Power quality is considered to be the major challenging one in the realization of the smart grid. So as to compensate for the issues occurring in power quality, active power filter (APFs) is mainly chosen as they are capable of filtering fast and has some active compensation. Also, load current related power quality constraint can be solved, such as unbalanced power, huge (Total harmonic distortion) THD level, and reduced power factor. For correcting the inappropriate supply of voltage and load current, the unified power quality conditioner (UPQC) and an effective integration of wind turbine are employed. A UPQC is a group of both shunt and series APF in a continuous manner having a conventional DC link capacitor. The voltage control of the DC link capacitor is significant in attaining a preferred performance on UPQC. In this paper, the UPQC with a Modified Grey Wolf Optimization (MGWO) based PI controller integrated with renewable energy like Wind turbine squirrel cage induction generator (SCIG) was implemented for the elimination of voltage and current harmonics imperfection precisely. Likewise, the Modified Grey Wolf Optimization (MGWO) was also exploited in UPQC. The performance analysis was made with UPQC, without UPQC, and with MGWO & UPQC and the simulation, outcomes are estimated and compared for the parameters THD values, load voltage and current. Also, the performance analysis was implemented in hardware prototype set-up and the results attained are depicted. [ABSTRACT FROM AUTHOR]