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This paper deals with design and implementation of a grid interfaced voltage source converter which uses an LCL passive filter in its output terminal and a Proportional Resonance (PR) controller to delivering power of a distributed generation source to power utility and local load. LCL filer in output of the converter analytically is designed and its different transfer functions are obtained for assessment on elimination of any probable parallel resonant in power system. The power converter uses a controller system to work on two modes of operation, stand-alone and grid-connected modes, and also has a seamless transfer between these two modes of operation. Furthermore, a fast semiconductor-based protection system is designed for the power converter. Performance of the designed grid interface converter is evaluated by using an 85 kVA industrial setup.