This paper presents a grid-interactive current controlled voltage source inverter (CCVSI) with uniterruptible power supply (UPS), which uses an inner current control loop (polarized ramp time (PRT)) and outer feedback control loops to improve grid power quality and UPS. To reduce the complexity, cost and number of power conversions, which results in higher efficiency, a single stage CCVSI is used. The operation of this system could be divided into the power quality control (PQC) state mode and the UPS state mode. In PQC mode, the system operated to compensate the reactive power demand by nonlinear load or variation in load. In UPS mode. the system is controlled to provide a sinusoidal voltage at the rated value for the load when the gird fail. To verify the proposed system, a comprehensive evaluation with theoretical analysis, simulation and experimental results for 1KVA load capacity is presented.