This research work puts forward a hybrid AC/DC microgrid with renewable energy sources pertaining to consumer’s residential area for meeting the demand. Currently, the power generation and consumption have experienced key transformations. One such tendency would be integration of microgrids into the distribution network that is characterized by high penetration of renewable energy resources as well as operations in parallel. Traditional droop control can be employed in order to get an accurate steady state averaged active power sharing amongst parallel inverters pertaining to hybrid AC/DC microgrid. It is presumed that there would be similar transient average power responses, and there would be no circulating current flowing between the units for identical inverters possessing the same droop gain. However, the instantaneous power could be affected by different line impedances considerably and thus resulting in variation in circulating power that flows amongst inverters, especially during unexpected disturbances like load changes. This power, if absorbed by the inverter, could result in sudden DC-link voltage rise and trip the inverter, which in turn causes performance degradation of the entire hybrid microgrid. When the hybrid generators act as unidirectional power source, the issue worsens further. In this research work, we have put forward a new distributed coordinated control pertaining to hybrid microgrid, which can be applied for both grid connected and islanded modes that include variable loads and hybrid energy resources. Also, in order to choose the most effective controller scheme, a participation factor analysis has been designed for binding the DC-link voltage as well as reducing the circulating power. Moreover, to both photovoltaic stations and wind turbines, maximum power point tracking (MPPT) techniques have been used in order to extract the maximum power from hybrid power system when there is discrepancy in environmental circumstances. Lastly, the feasibility and effectiveness pertaining to the introduced strategy for hybrid microgrid in various modes are confirmed via simulation results.