en 2-Industrial Electronics Industrial Electronics Research Paper Research Paper <div style="text-align: justify;"><span style="font-family:Times New Roman;"><span style="font-size:14px;"><span style="color:#000000;">Considering the presence of different model parameters and controlling variables, as well as the nonlinear nature of DC to AC inverters; stabilizing the closed-loop system for grid current balancing is a challenging task. To cope with these issues, a novel sliding mode controller is proposed for the current balancing of local loads using grid-connected inverters in this paper. The closed-loop system includes two different controlling loops: a current controller which regulates the output current of grid-connected inverter and a voltage controller which is responsible for DC link voltage regulation. The main features of the proposed nonlinear controller are reactive power compensation, harmonic filtering and three-phase balancing of local nonlinear loads.&nbsp; The developed controller is designed based on the state-space averaged modelling its stability and robustness are proved analytically using the Lyapunov stability theorem. The accuracy and effectiveness of proposed controlled approach are investigated through the PC-based simulations in MATLAB/Simulink.</span></span></span></div> Harmonic and Reactive Compensation, Robustness and Stability, Shunt Active Power Filter, Sliding Mode Control, Three-Phase Current Balancing, Wide Operational Range. 1 9 http://ijeee.iust.ac.ir/browse.php?a_code=A-10-1801-1&slc_lang=en&sid=1 A. Zakipour zakipour@arakut.ac.ir 1800319475328460013403 0000000349005841 Yes Faculty of Electrical Engineering, Arak University of Technology (AUT), Arak, Iran. K. Aminzare kuroush@gmail.com 1800319475328460013404 1800319475328460013404 No Islamic Azad University, Science and Research Branch, Tehran, Iran. M. Salimi m.salimi@gre.ac.uk 1800319475328460013405 0000000330073027 No Faculty of Engineering and Science, University of Greenwich, Kent, UK.