Abstract: An improved “3-in-1” BESS that performs three functions: (1) improving the transient stability in a hybrid AC/DC microgrid (HMG) system during any fault; (2) improving power quality in the HMG during any sudden load change; and (3) mitigating power and frequency fluctuations due to variations in wind speed and solar irradiance in the HMG. The same control and structural design is used for all three functions, and the improved BESS thus is adaptive to the changing operating situations within the HMG, and eliminates the requirement for a number of higher cost auxiliary control devices. The control structure of the improved BESS is simple, so it is easier and cheaper to manufacture, and can be easily implemented in practice, and retro-fit into existing HMGs.