Microgrids (MGs) play a pivotal role in seamlessly integrating Renewable Energy Sources (RESs) and Energy Storage Systems (ESSs) into the electrical grid, offering enhanced efficiency, reduced transmission losses, and economic benefits. However, the intermittent nature of RESs due to the stochastic availability of renewable resources introduces challenges to power quality across the grid. Addressing these challenges necessitates the application of optimization techniques and control strategies to power converters. This comprehensive review delves into three crucial dimensions: (i) The powerquality issues arising in MGs during both islanded and grid-connected operations; (ii) Optimization techniques employed within MGs to achieve optimal Energy Management System (EMS) performance; and (iii) Control strategies executed in MGs to ensure stability, mitigate power-quality concerns, achieve power balance, and synchronize with the grid. Significantly, this paper underscores the significance of hybrid MGs (HMGs), which amalgamate the strengths of AC–MGs and DC–MGs to enhance system reliability. As the utility grid gravitates towards refined MG structures, this review lays the groundwork for forthcoming research, comparative evaluations, and the advancement of pioneering techniques in the realm of HMGs. Manuscript profile