In this paper, an enhanced optimal control technique based on adaptive Maximize-M Kalman filter (AM-MKF) is used. To maximize power extraction from solar PV (Photovoltaic) panel, a learning-based hill climbing (L-HC) algorithm is implemented for a grid integrated solar PV system. For the testing, a three-phase system configuration based on 2-stage topology, and the deployed load on a common connection point (CCP) are considered. The L-HC MPPT algorithm is the modified version of HC (Hill Climbing) algorithm, where issues like, oscillation in steady-state condition and, slow response during dynamic change condition are mitigated. The AM-MKF is an advanced version of KF (Kalman Filter), where for optimal estimation in KF, an AM-M (Adaptive Maximize-M) concept is integrated. The key objective of the novel control strategy is to extract maximum power from the solar panel and to meet the demand of the load. After satisfying the load demand, the rest power is transferred to the grid. However, in the nighttime, the system is used for reactive power support, which mode of operation is known as a DSTATCOM (Distribution Static Compensator). The capability of developed control strategies, is proven through testing on a prototype. During experimentation, different adverse grid conditions, unbalanced load situation and variable solar insolation are considered. In these situations, the satisfactory performances of control techniques prove the effectiveness of the developed control strategy. © 2004-2012 IEEE.