This paper presents a novel method of power quality enrichment in a grid-connected photovoltaic (PV) system using a distribution static compensator (DSTATCOM). The paper consists of two-step control processes. In the primary step, a fuzzy logic controller (FLC) is employed in the DC-DC converter to extract the peak power point from the PV panel, where the FLC produces a switching signal for the DC-DC converter. In the secondary step, a unit vector template (UVT)/adaptive linear neuron (ADALINE)-based least mean square (LMS) controller is adopted in the DC-AC converter, i.e., voltage source converter (VSC). The input to this VSC is the boosted DC voltage, which originates from the PV panel as a result of DC-DC conversion. The VSC shunted with the power grid is known as a DSTATCOM, which can maintain the power quality in the distribution system. The UVT controller generates reference source currents from the grid voltages and DC-link voltages. The ADALINE-based LMS controller calculates the online weight according to the previous weights by the sensed load current. The UVT/ADALINE-based LMS controller of a DSTATCOM performs several tasks such as maintaining the sinusoidal source current, achieving a unity power factor, and performing reactive power compensation. The reference current extracted from the UVT/ADALINE-based LMS controller is fed to the hysteresis current controller to obtain the desired switching signal for the VSC. A 100 kW solar PV system integrated into a three-phase four-wire distribution system through a four-leg VSC is designed in MATLAB/Simulink. The performances of the FLC and UVT/ADALINE-based LMS controllers are demonstrated under various irradiances as well as constant temperature and nonlinear loading conditions.