This document discusses the development of a fuzzy step size least mean square (FSS-LMS) algorithm aimed at improving power quality in grid-interconnected distribution systems with renewable energy sources. The proposed algorithm addresses the challenges posed by nonlinear loads and harmonics, ensuring balanced grid currents and efficient energy injection from renewable sources. Simulation results demonstrate that the FSS-LMS algorithm can effectively mitigate current imbalances and harmonics, achieving a unity power factor and improving overall grid performance.