An integration of renewable power sources, power electronic devices, nonlinear and unbalanced loads cause power quality (PQ) problems. Mitigating PQ issues in distribution system is critical for both customers and suppliers because it enhances system efficiency, lowers electricity prices, ensures continuous supply, and decreases the need for frequent maintenance. A unified power quality conditioner (UPQC) is used with the standalone hydro-electric system to enhance the voltage and current qualities simultaneously. A hydro driven permanent magnet synchronous machine is working as a generator (PMSG) and is feeding a local sensitive load. A predictive based control technique is used for proper control of UPQC by generating desired switching pulses. By injecting the appropriate voltages through a series injection transformer, this UPQC-based system enhances the power quality (PQ) of load voltages by keeping their waveforms sinusoidal and their magnitudes constant at desired value despite variations in generated voltages caused by changes in loads. The shunt compensator not only maintains a sinusoidal and harmonic-free PMSG stator currents, but it also provides the system’s required reactive power and forces the generator to operate at unity power factor lowering the losses. Presented PMSG-based hydro-electric power generation with a battery support is simulated in MATLAB, and performances are examined for several scenarios. Moreover, through a laboratory prototype validation, the effectiveness in providing good quality of current and voltage ensuring to follow the IEEE std. 519.