The extensive use of renewable energy sources (RESs) in energy sectors plays a vital role in meeting the present energy demand. The widespread utilization of allocated resources leads to multiple usages of converters for synchronization with the power grid, introducing poor power quality. The integration of distributed energy resources produces uncertainties which are reflected in the distribution system. The major power quality problems such as voltage sag/swell, voltage unbalancing, poor power factor, harmonics distortion (THD), and power transients appear during the transition of micro-grids (MGs). In this research, a single micro-grid is designed with PVs, wind generators, and fuel cells as distributed energy resources (DERs). A nonlinear auto regressive exogenous input neural network (NARX-NN) controller has been investigated in this micro-grid in order to maintain the above power quality issues within the specific standard range (IEEE/IEC standards). The performance of the NARX-NN controller is compared with PID and fuzzy-PID controllers. The single micro-grid is extended to design a three-phase large-scale realistic micro-grid structure to test the feasibility of the proposed controller. The realistic micro-grid is verified through addition of line-impedance, communication delay, demand response, and off-nominal situations. The proposed controller is also validated by simulating different test scenarios using MATLAB/Simulink and TMS320-based processor-in-loop (PIL) for real-time implementation.