Modern smart grids are replacing conventional power networks with interconnected microgrids with a high penetration rate of storage devices and renewable energy sources. One of the critical aspects of the operation of microgrid power systems is control strategy. Different control strategies have been researched but need further attention to control hybrid microgrids with interlinking converters. In this research, the microgrid system incorporated renewable solar and wind energy resources; the converter and the permanent magnet synchronous generator function have been fixed to control the DC power system. Further, a novel Lotus-based water drop control (LbWDC) algorithm is created to manage the power quality. The fitness process of the hybrid LbWDC algorithm reduced the higher-order harmonics and increased the voltage stability of the grid architecture. The working efficiency of the designed algorithm is measured in terms of power loss, power quality, and THD. The controlled THD obtained using the LbWDC algorithm is 2.06%, less than the prevailing algorithms.