This document presents an improved controller for the dual topology unified power quality conditioner (iUPQC) that extends its applicability for power quality compensation and microgrid applications. The iUPQC can provide reactive power support to regulate the voltage at both the load bus and grid-side bus, acting as a static synchronous compensator (STATCOM) on the grid side while also providing typical UPQC functions like mitigating voltage sags/swells at the load side. Simulation results are provided to validate the new functionality of the device.