In this work, a Novel Adaptive Filter (NAF) is proposed for optimal control of grid-integrated solar PV (Photovoltaic) generating system. The proposed NAF is the improved form of classical adaptive vectorial filter (AVF), where inherent problems of AVF technique, like unable to handle the phase imbalance and phase shift issues, are successfully mitigated. For performance evaluation of NAF based control technique, a single-stage topology of three-phase grid integrated solar PV system is taken, where the loads are connected at the PCC (Point of Common Coupling). The prime objective of proposed NAF based control technique is to meet the active power requirement of loads from generated solar PV power, and after fulfill the load demand, the excess power is supplied to the grid. However, when generated PV power is not sufficient for the load then the NAF based control fulfills the load demand by taking extra required power from the grid. During this process, the power quality of the grid power is improved. The controller action provides, power factor correction, harmonics filtering and mitigation of other power quality issues. Moreover, when the solar irradiation is zero, then the voltage source converter acts as a distribution static compensator (DSTATCOM), which enhances the utilization factor of the system. The proposed techniques are modeled and their performances are verified experimentally on a developed prototype, in solar insolation variation conditions, unbalanced loading, as well as in different grid disturbances such as overvoltage, under-voltage, phase imbalance, harmonics distortion in the grid voltage etc. © 2018 IEEE.